Setting up a Company

Foreign investors have at their disposal several types of trading entities for investing in Spain or Cantabria, provided for by Spanish legislation. Traditionally, the most widely used company type has been the sociedad anónima (S.A., equivalent to a public limited company); however, in recent years the sociedad de responsabilidad limitada (S.L., equivalent to a private limited company) has gained in popularity and become more frequent.

Another possibility is to form a partnership with other businesses already established in Spain. (Joint ventures)

• Economic Interest Grouping (EIG), or
• European Economic Interest Grouping (EEIG)
• Temporary Joint Venture (TJV).
• Collaborating with one or more Spanish businesses in a format belonging to the Spanish legal system: "cuenta en participación" (the ‘Joint account').
• Joint ventures through private or public limited companies.

"Step by Step"

Step 1

• TAX IDENTIFICATION NUMBER (NIF) AND FOREIGNER IDENTIFICATION NUMBER (NIE)

Step 2 SETTING UP A COMPANY

The most common company types envisaged by Spanish business law are the sociedad anónima (S.A.) and the sociedad de responsabilidad limitada (S.L.) Setting up a Sociedad Anónima, as a general rule, takes from six to eight weeks.

Step 3 COSTS

• Property Transfer Tax at a rate of 1% of the capital.
• Notary fees for their involvement in setting up the company, applied in accordance with the amount of capital.
• Fee for the registration of the company on the Register of Companies.
• Opening licence. A one-off municipal tax, generally of a relatively low amount.
• Other expenses (e.g. fees for professional services), difficult to quantify.
• Other options for setting up in Spain include opening a branch and subsidiary.

For more information please do not hesitate to contact us.