The vast majority of new companies in Spain now are limited liability companies (SLs). Spain streamlined the process of creating a sociedad limitada with standard bylaws, using an automated platform called CIRCE. The original law was passed in 2003 (termed an SLNE (sociedad limitada nueva empresa), though it took many years before one could find a notary willing to process it.
These days, it is rare to create a new Sociedad Anónima.
The following chart summarizes the different types of business entities.
Business Type | Liability | # of Partners | Backing Capital | Taxation |
---|---|---|---|---|
Autónomo (self-employed, freelancer) |
individual |
1 |
not required |
|
Sociedad Limitada (limited liability company) |
corporate |
1 to 50 |
minimum 3000€ |
|
Sociedad Anónima (corporation) |
corporate |
1 or more |
minimum 60,102€ |
|
Sociedad Colectiva (co-partnership) |
corporate |
2 to 50 |
0 - 250,000€ |
|
Sociedad Cooperativa (cooperative) |
corporate |
3 or more (if Cooperativa Laboral, 1 must be a Spanish citizen) |
minimum 25,000€ |
|
Sociedad Limitada Laboral (limited partnership) |
corporate |
3 or more (1 must be a Spanish citizen) |
minimum 25,000€ |
FAQs:
Should I be self-employed or should I form a company in Spain?
What is the difference between a Sociedad Limitada (SL) and a Sociedad Anónima (SA)?
Articles:
Spanish ID numbers: NIE, CIF, VAT#
Doing business in Spain: tips for the business traveller
How to search for information about a company in Spain
Tips on corporate banking in Spain
Forming a joint venture
Foreign investment
Getting a business valuation in Spain
Tips on renting business premises in Spain
Use of a company credit card in Spain
Corporate taxes
Government offices in Spain, with links
Call us at 932 155 393 or fill out the form below.
You might choose an SA:
Otherwise, you would choose an SL. Most companies formed are now SLs, and not only for small businesses.