Creating a company in Spain in 2023 is not an impossible mission, much less a task that will require a titanic effort.
If you have decided to start your own business, or become self-employed in this European country, you should know that in recent years the process has become significantly more dynamic.
This means that the bureaucracy has been reduced and that you are not forced to invest a fortune to start a successful business.
How to create your own company in Spain:
You currently have the option of setting up your own company online, which will save time and optimize resources.
So, if you have decided to give life to that business idea that has been going around in your head for years, you need to familiarize yourself with this process as soon as possible.
Below we will explain, step by step, how to create a company in Spain in an orderly, satisfactory and safe way.
With this information you will know what to expect and you will be more prepared to simplify some procedures and minimize waiting times.
Note that start a business in this country it does not have to be exhausting or complicated, especially since many procedures are carried out online.
These are the steps to follow to successfully start your own company in Spanish territory:
1. Choose the type of company
The starting point for creating a company in Spain is to define the company typeaccording to your business idea.
Without a doubt, the nature of your company will help you complete this step successfully, or in a diligent and accurate way.
You must choose the legal form of your company before starting its respective registration, since certain important aspects will depend on it, such as:
- Sector in which your business will develop.
- Type of economic activity.
- Economic needs and requirements.
- Capital contribution.
- Tax aspects.
- Number of partners and their responsibilities.
Types of commercial companies:
It is also important that you investigate and understand the different types of commercial companies that can be incorporated in this country. The most popular are:
It is made up of a natural person whose liability is limited to the capital contributed. And at the moment, at least 3,000 euros are only required to set it up, either in goods or money.
It is a company with a commercial nature in which the partners attend, personally, to the company debts.
According to figures from National Statistics Institute In Spain, in 2019 limited companies represented 99% of all legal forms.
This highlights their popularity in this country, partly because they are quick and easy to form, and also because they offer numerous benefits.
Creating a company in Spain with this legal form implies the participation of three partners under a free adhesion regime.
The capital cannot be less than 1,800 euros, and in fact, 25% must be contributed at the time of constitution.
In this case, the minimum capital must be 60,000 euros, it is divided into shares and is formed as a result of the contributions of each partner.
In addition, a Public Limited Company does not respond, personally, to the social debts that the company has.
The Civil Society does not require the contribution of capital, but it has the particularity that the liability of the partners is unlimited.
The self-employed are not required to contribute capital to define their legal form. In addition, their liability is unlimited (in case they want to incorporate as a company).
2. Define the name of the company
The denomination, known colloquially as “the name” of the company, it must define both its activity and its philosophy.
This procedure allows you to obtain the public deed of incorporation of any company in Spain.
After doing so, you will have the negative company certification at hand, which certifies that there is no other company with the same name.
An important point that you must take into account when starting a business in Spain is that the reserve of the denomination only lasts six months.
In other words, you must register your company in the Mercantile Registry once that time has elapsed, or otherwise, it will be free again and could be used by another company.
Get negative certification:
Currently, there are several mechanisms to obtain negative certification, such as:
- Submit the application, ordinarily or electronically, at the offices of the Central Mercantile Registry (RMC).
- Go to the RMC directly and present the physical application form.
- By Internet: for this you must fill out a form on the RMC website itself.
3. Process the NIF of your company
This is one of the most important steps when creating a company in Spain legally and satisfactorily.
It consists of requesting your Tax Identification Number (NIF), which will help you, among other things, to keep you up to date with the Treasury.
To do this, you must access the Electronic Office of the Tax Agency, specifically the section “Forms 036 and 037”.
The NIF identifies your company in tax matters and you must have it before making deliveries, acquiring goods or services, receiving collections or payment payments, or hiring personnel.
It may interest you: 30 Mistakes of an entrepreneur that you should avoid when starting
4. Create the public deed
After requesting the negative certification, you must proceed to create the public deed at the notary.
It is a document signed by all the partners that make up your company (mandatorily before a notary).
5. Registration in the Commercial Registry
When you are granted the public deed, you must wait a month to go to the Provincial Mercantile Registry and obtain full legal competence.
The partners or signatories must process said registration within the established time, or otherwise, they could delay the entire process of creating a company in Spain.
If you have decided to set up a Limited Company, after defining the company name, the deposit of the share capital must be made.
This means that each partner must deposit their part of the share capital in an account that is in the name of the company.
Although they can also contribute rights or patrimonial assets that can be economically valued.
Finally, they must sign at the notary’s office and present both the bank’s certificate that justifies the capital contribution, and the certification of the company name.
In this way, the company will be registered and will be authorized to start invoicing now generate money.
Additional procedures when setting up a Spanish company:
At the same time, there are some additional procedures that you must carry out when creating a company in Spain. Here are some of them:
This includes the famous “Modelo 036” that you must deliver to the Treasury to process the company’s NIF.
Additionally, there is the Digital Certificate of a Physical Person issued by the National Currency and Stamp Factory (FNMT).
This certification is free of charge and allows you to sign, or encrypt documents, electronically or telematically. In addition, it is used for tax, labor procedures, etc.
Once the administrator of the company is defined, he must register in the Special Regime for Self-Employed Workers, under the figure of Self-Employed Company.
On the other hand, you are obliged to register the company with Social Security when hiring employees or workers for your company.
These contracts also imply formal obligations that you cannot ignore or dismiss, such as respect for labor regulations in force in this country.
6. Obligations or accounting procedures
After creating a company in Spain, you must take charge of the accounting obligations, according to the provisions of the Commercial Code.
For this reason, you are required to keep an inventory book, annual accounts and a daily book.
And not only that, you must also submit them to the Mercantile Registry of the province where your company is registered.
carry the accounting of a business It requires time, dedication and expertise. And if you don’t feel prepared, the ideal is to hire a professional as soon as possible.
Register a company in Spain with ease:
Gone are the days when creating a company in Spain was a slow, cumbersome and complicated process.
Currently, you only have to follow the five steps that we have just shared with you to establish that company that could bring you closer to your Financial Independence.
Therefore, if you are thinking of venturing out soon, and bringing your business idea to life, it is likely that this information will serve as a guide and make the process even easier.
Continue reading: How to make a business transfer in 12 steps (with example)