Company Formation in Spain

Set up your Spanish limited company with clear legal guidance from the start. We handle the incorporation process, coordinate the notary and registry steps, and help you move into accounting, tax, payroll, and compliance once the company is active.

Whether you are a Spanish resident or non-resident, we can assist with all the practical steps needed to get your company formed properly and operating in Spain.

The Company Formation process in Spain

In general, forming a Spanish limited company involves a series of legal and administrative steps. If you already have a NIE number, the core process usually includes reserving the company name, obtaining the company tax identification number, preparing the incorporation deed, signing before a notary either by Power of Attorney or in person, registering the company with the Commercial Registry, and filing the required tax forms.

Depending on the structure and intended activity of the company, further steps may also be needed, such as obtaining a digital certificate, opening a bank account, registering for intra-Community transactions through VIES, setting up Social Security, or arranging payroll.

After incorporation, the company must also meet its ongoing obligations. These may include bookkeeping, quarterly and annual tax filings, annual accounts, payroll compliance, and other formal requirements depending on whether the company hires staff, trades internationally, or remains inactive at first.

We help clients through the incorporation process itself and continue supporting the company once it is active.

What our service includes

We handle the legal steps needed to form your Spanish limited company and coordinate the practical points that usually slow founders down, including notary arrangements, registry filings, and the company documentation required to get started.

Once the company is active, we can also assist with accounting, tax filings, payroll, VAT matters, VIES registration, and other compliance requirements depending on the company’s activity.

We also help clients with VeriFactu invoicing compliance through our invoicing software service and the training needed to use it properly.

Services commonly needed alongside company formation

Alongside the incorporation of the SL, clients often need a number of related services to get the company ready to operate properly. These commonly include:

• Non-resident NIE number: Needed when a shareholder or director does not already have a Spanish foreign identification number.
• Power of Attorney: Useful when you want us to handle the process on your behalf instead of attending each step in person.
• Digital certificate: Needed to complete many procedures online with the Spanish authorities.
• DEH notifications: Setup for receiving official notifications from the Tax Office and Social Security authorities.
• Physical address: Needed when you require a registered company address in Spain.
• Bank account opening: Support with opening a corporate bank account for the company.

Choosing the right company structure

The type of entity you choose, and its relationship with any parent company or international shareholder, should be assessed properly from the start. Depending on the setup, the company may have different accounting, tax, payroll, and compliance obligations.

In our experience, getting the structure right from the beginning saves time and money later. Please contact us if you would like us to review which setup best suits your needs.

Why Strong Law & Compliance?

• Ongoing support, not just incorporation: We do not only form the company. We can continue with the legal, tax, accounting, payroll, NIE, residence, and Social Security steps that often follow. Your documents and filings are available through your client area at any time.
• Clear fixed fees from the start: We offer free company formation when you hire our accounting service, and we explain from the outset what is included and what conditions apply.
• Experience with international clients: Our team speaks English, French, and Portuguese. We regularly assist non-residents and international businesses setting up in Spain, including cross-border issues involving foreign parent companies, director registrations, and practical setup questions.

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FAQs:

Can you form my company by Power of Attorney?

Yes. Many clients choose to authorize the process by Power of Attorney, especially if they cannot easily travel to Spain. This allows us to handle the incorporation steps on your behalf. We currently offer three Power of Attorney options, depending on how much assistance you need and your availability for coming to Spain.

• Preparation of Power of Attorney: We prepare the document and send it to you with signing instructions. You then sign it in your home country and arrange the Hague Apostille and courier delivery to our offices. No translation is normally needed because the document can be prepared in English or French together with Spanish.
• Preparation and signing before a Spanish notary: We prepare the document, coordinate the signing, and accompany you to a notary in Madrid, Barcelona, or Tenerife.
• Express Power of Attorney by remote signing: We manage the full process, including remote online notarization, apostille, and courier delivery to our offices.

Self-employed or limited company?

If you are self-employed and someone files a claim against you, your personal assets may be exposed. With a limited company, liability normally sits with the company itself, which is one of the main reasons many founders choose an SL.

The right choice still depends on your expected income, your risk profile, and whether you need a structure that can hire staff or separate personal and business activity. Read our article comparing a company and self-employment in Spain for a fuller explanation.

Is having a physical address in Spain mandatory?

Yes. A Spanish company must have a physical address in Spain as its registered address. Your SL will be registered with the Mercantile Registry corresponding to that address, and that address will form part of the company’s public record.

Is it possible to use a company for wealth planning?

Yes. In some cases, an SL can be used to gradually transfer assets or business value while preserving control and defining different economic or voting rights between family members. This should be structured carefully because the legal and tax consequences depend on the specific situation.

Is it better to create a new company or buy an existing one and change its name?

If you purchase an already incorporated company, you still need to go to a notary to change the director and transfer the shares to your name, and then register those changes with the Commercial Registry and the Tax Agency. The only steps saved are usually the name reservation and the bank certificate, and you also lose the ability to choose the company name freely.

For that reason, we generally recommend incorporating your own SL unless there is a specific reason to acquire an existing company.