ESTABLISHING A BUSINESS IN SPAIN
Starting a business in Spain
If you are thinking about starting a business in Spain, Desmon Abogados can advise you about what type of partnership best fits your needs. We will also advise you on the documents which will be necessary, and the taxes required to start a business.
The type of partnership which is most often used in Spain is the “Sociedad Limitada” (S.L.), or limited partnership. There are other types of partnerships, but they are usually big companies. If the S.L. is adequate for your needs, it offers the advantage of limiting partner responsibility in the case that debts are acquired in the business. This means that the partners in the company are responsible for covering their business debts only with company property, not personal property. A minimum investment of 3,005.06€ must be deposited in the company bank account when the company is set up.
Once you have decided to start a business as a limited partnership (S.L.), the first thing you must do is select a name for your company. We can help you do this if you wish. We advise you to choose five different possible names, in case the one you have chosen is already being used. We will then reserve the name for you.
When the company name has been reserved, the partners must deposit at least 3,005.06€ in the company account, and obtain a certificate testifying that this deposit has been made. We will help you to write the official functions of the company and the Statutes of the partnership, which will include the regulations which must be followed. These will be adapted to your needs.
The agreement to set up the company will be signed in the presence of a notary. At this time, you must present the certificates of the bank deposit and the reserved name, as well as the official functions document and the Statutes of the partnership.
After presenting the documents at the Notary, it will be necessary to pay some taxes and obtain a CIF (company fiscal identification number), and register it with the Spanish Social Security office, in order for the company to begin working. We will present the official Notary document in the Mercantile Registry.
Buying a property in Spain in the name of a foreign company.
At Desmon Abogados, we can help you with all the processes that are necessary so that your company will receive the approval of the Spanish authorities to buy a property in Spain. To do this, it will be necessary for us to have all the documentation of your foreign business translated into Spanish, and with an apostille. In addition, it will be necessary for us to obtain a CIF number from the Internal Revenue office, since you will be required to pay taxes in Spain related to the purchase.