Spain, one of the largest economies in the Eurozone, has become a hotspot for ambitious entrepreneurs looking to expand into a vibrant market. With its strategic location, access to over 448 million consumers in the EU, and a thriving startup ecosystem, setting up a company in Spain is a smart move for any foreign investor. Whether you’re eyeing Spain’s booming tech sector or planning to take advantage of its robust tourism industry, knowing the right steps is essential to turning your entrepreneurial vision into a thriving business.
In this guide, we’ll break down the 7 crucial steps to set up a company in Spain as a foreigner, from obtaining your NIE to securing a business bank account, so you can hit the ground running in one of Europe’s most dynamic economies.
How to Set Up a Company in Spain as a Foreigner?
If you want to conduct business globally, then you need to initially register your firm. In this section, we will be covering the steps to set up a company in Spain as a foreigner:
1. Acquire the NIE Number for Non-Spanish Citizens
The first crucial step in setting up a business in Spain as a foreigner is obtaining an NIE number, also known as Número de Identificación de Extranjeros. This is your foreign identification number, which is mandatory for any non-Spanish citizen conducting economic transactions in Spain, including company formation.
You can apply in person for your NIE at a Spanish police station in Spain or at a Spanish consulate in your native country. You will need to submit an application form, and proof of identity, and explain the reason for your NIE request, which in this case is company formation. Having this identification in hand opens the gateway to all business-related activities in Spain.
2. Choose the Business Structure (S.L.)
Once you have your NIE, you must decide on the legal framework for your company. The most common structure for entrepreneurs is the Sociedad Limitada (S.L.), which is the Spanish equivalent of a limited liability company. It offers significant flexibility and limited liability, making it a favourable choice for many foreign entrepreneurs.
You can operate in the Spanish market and safeguard your personal assets at the same time with the S.L. structure. It’s a great option whether you plan to launch a small startup or establish a more complex venture. Ensure that you understand the specific legal obligations associated with the S.L. structure to make the best decision.
Let us guide you through every step of the process to seamlessly register your Sociedad Limitada company in Spain, ensuring a smooth and efficient setup.
3. Choose & Register a Company Name
The next step is selecting a name for your business. In Spain, the registration of your company name is done through the Registro Mercantil Central (RMC). As an entrepreneur, you can submit up to three name options in order of preference, and the authorities will approve one based on availability.
It’s critical to choose a name that accurately describes your business and is unique enough to avoid rejection by the RMC. Following approval of the name, it is reserved for a six-month period, giving you ample time to proceed with the remaining steps. Our business professionals can help you in selecting and reserving your business name with the appropriate Spanish authorities. Set up a consultation with our specialists right away.
4. Signing and Legalizing the Power of Attorney
If you are unable to be physically present in Spain throughout the incorporation process, you may designate a legal representative via a Power of Attorney (PoA). This document authorizes a trusted individual or legal firm to act on your behalf in matters of company registration and legal procedures.
For the PoA to be valid in Spain, it must be signed and legalized in front of a notary. If the document is signed outside of Spain, you will also need an Apostille of the Hague to ensure its legal recognition in Spain.
5. Open a Company Bank Account to Deposit the Firm’s Minimum Share Capital
An S.L. in Spain needs a minimum share capital of €3,000. This amount must be deposited into a company bank account, which you will need to open at a Spanish bank. After depositing the funds, the bank will give you with a certificate, attesting to the capital deposit, which is crucial for the next steps.
Are you looking to open a business bank account and unsure which bank offers the best solutions for your business needs? Get in touch with our business experts and they will assist you in opening a corporate bank account in one of the best banks in Spain.
6. Sign the Public Deed of Incorporation
Once your capital is deposited and other documents are prepared, you’ll need to sign the public deed of incorporation in front of a notary. This legal document solidifies the establishment of your company in Spain and must be drafted by a Spanish notary.
Important information including your company name, registered address, share capital, and the names of the directors and shareholders will all be included in the public deed. At the signing, all of the original shareholders and members, or their legal representatives, have to be present.
7. Apply for a Tax Identification Number with the Spanish Tax Agency
The final step to complete your company setup is applying for a CIF (Código de Identificación Fiscal), which is the tax identification number for companies in Spain. This number is issued by the Spanish Tax Agency (Agencia Tributaria) and is required for all business operations, including invoicing, tax filing, and opening additional company accounts.
With your CIF, your company is officially recognized by the Spanish authorities, and you’re ready to operate legally in the Spanish market. Be mindful of Spain’s corporate tax obligations and deadlines to ensure compliance from day one.
Conclusion
Starting a company in Spain as a foreigner is an exciting entrepreneurial move. By following these seven steps, from acquiring your NIE to applying for a tax identification number, you’ll be well on your way to launching a successful business in Spain. With the right preparation and knowledge of the process, you can navigate the Spanish market confidently and focus on growing your business.
As you embark on your Spanish business journey, professional support can really make a difference. If you’re looking for professional help in navigating the legalities, opening a business bank account, or registering your company name, OnDemand International’s team of specialists is ready to guide you every step of the way. Speak with our business professionals today and get your company registered within 2 weeks.
FAQ’s
No, you don’t have to be physically present in Spain to set up a company. A power of attorney (PoA) allows you to designate someone to act as your legal representative during this process. The PoA must be signed and legalized, and if issued outside of Spain, it will also require an Apostille of the Hague for international recognition.
The NIE (Número de Identificación de Extranjeros) is a foreigner identification number required for any non-Spanish citizen conducting business or financial transactions in Spain. It is essential for registering a company, establishing a bank account, and paying taxes.
The procedure for establishing a business in Spain can take anywhere from 2-4 weeks. This includes obtaining your NIE, registering the company name, opening a bank account, and finalizing the public deed of incorporation.
For a Sociedad Limitada (S.L.), the minimum share capital is €3,000. Prior to the company’s official registration, this sum needs to be transferred into a Spanish bank account.
When registering a company name in Spain, you must provide up to three name options to the Registro Mercantil Central (RMC). The name must be original and cannot be used to register a business name that already exists. The name is reserved for six months after it is authorized.
Yes, foreigners can own 100% of a company in Spain, and there are no restrictions on foreign ownership. As long as you follow the necessary legal steps, including acquiring your NIE and meeting all business registration requirements, you can fully own and operate your business in Spain.
Yes, many firms offer specialized services to help with company formation in Spain. At OnDemand International, we provide expert assistance in registering your company, securing a business bank account, and managing all the legal formalities to make the process as smooth as possible.
