Spain Company Formation
What does it take to carry out company formation in Spain? Here are the steps.
Spain company formation takes approximately two working weeks. Acceptable company suffixes include Sociedad Limitada Unipersonal or Sociedad Limitada, with the former applicable for companies with only one owner.
There only needs to be one director and shareholder, and there are no nationality or residency requirements for directors or shareholders.
However, each of the company’s shareholders and directors must receive a fiscal identity number.
The company must propose a name for approval to begin the process and must also submit the names of its director or directors and shareholders, with the Mercantile Register approving.
A notary then takes over the process and the relevant tax authorities receive notification of the approved name. Minimum requirements for share capital apply, but shareholder names are kept private after publication in the Mercantile Record upon company formation. The corporation will receive a VAT number and a VAT Information Exchange System ("VAIS") number, which may take up to two months.
The company can become operational as soon as it receives its Customer Information File ("CIF") number, which is usually on the day of incorporation and is the equivalent of a VAT number.
Company formation in Spain does require that the company register with social security, which can happen at the office corresponding to the registered address. If it chooses to employ in Spain, it must select a health insurance provider.
Notary and government fees are applicable with annual renewal fees and various filing requirements including environmental impact reports.