By
October 19, 2026
How to start a company in Spain?
Starting a company in Spain can be an attractive opportunity for entrepreneurs, international investors, and businesses looking to establish a presence in the European Union.
Spain offers access to the European Single Market, an established business environment, modern infrastructure, and opportunities across industries such as technology, consulting, professional services, tourism, e-commerce, and international trade.
Whether you are a Spanish resident, an EU citizen, or a non-EU entrepreneur, understanding the company formation process is essential before establishing a business.
One of the most common ways to start a company in Spain is by incorporating a Sociedad Limitada (SL), the Spanish equivalent of a private limited liability company.
This guide explains how to start a company in Spain, the different legal structures available, the documents required, the registration process, tax obligations, and how to open a business account for your new company.
Yes. Foreign individuals and businesses can establish companies in Spain, subject to applicable legal and administrative requirements.
Both EU and non-EU nationals can generally own shares in Spanish companies, and foreign investors can establish a Spanish limited company without necessarily residing in Spain.
Foreign entrepreneurs may be able to:
However, owning a Spanish company does not automatically provide the right to live or work in Spain.
Non-EU entrepreneurs who intend to reside and work in Spain may need an appropriate immigration authorization.
Certain foreign investments and regulated business activities may also be subject to additional requirements.
Before starting a company in Spain, it is important to choose the appropriate legal structure.
The most suitable option depends on the number of shareholders, expected business activities, capital requirements, and desired level of liability protection.
A Sociedad Limitada is one of the most commonly used company structures in Spain.
It is particularly suitable for small and medium-sized businesses, startups, consulting companies, and foreign entrepreneurs.
An SL generally offers:
The general legal minimum share capital for an SL is €1. However, companies formed with share capital below €3,000 are subject to additional statutory rules intended to protect creditors.
A Sociedad Anónima is generally more suitable for larger businesses, companies seeking substantial investment, or businesses requiring a more complex shareholding structure.
An SA has a statutory minimum share capital of €60,000, with applicable rules governing payment of capital upon incorporation.
An autónomo is a self-employed person conducting business in their own name rather than through a separate limited company.
This structure may be suitable for freelancers, independent professionals, and smaller businesses.
However, an autónomo generally does not benefit from the same separation of personal and business liability as a limited company.
An existing foreign company may establish a branch in Spain to conduct business locally.
A branch is generally not a separate legal entity from its foreign parent company.
An international company may establish a Spanish subsidiary, often using an SL structure.
A subsidiary is a separate legal entity and can be owned by a foreign parent company.
The company formation process in Spain involves several legal, administrative, and tax-related steps.
The exact procedure depends on the chosen legal structure and the circumstances of the shareholders and directors.
The first step is to determine which legal structure best suits your business.
For many entrepreneurs, a Sociedad Limitada is a practical choice because it provides a separate corporate entity and limited liability protection.
Consider the following factors before choosing:
Choosing the right structure at the beginning can help avoid unnecessary legal and administrative changes later.
Individuals involved in establishing a Spanish company may need Spanish identification numbers for legal and tax purposes.
Foreign individuals commonly require a Número de Identidad de Extranjero (NIE) for relevant Spanish administrative transactions.
Foreign corporate shareholders may require a Spanish tax identification number (NIF).
The exact requirements depend on the individuals or entities involved and their roles in the incorporation process.
Before incorporating a Spanish limited company, you generally need to obtain a certificate confirming the availability of the proposed company name.
This is commonly known as the certificación negativa de denominación social.
The certificate is issued through the Spanish Central Commercial Registry (Registro Mercantil Central).
It confirms that the proposed name is not already registered in a way that prevents its use.
Entrepreneurs should prepare alternative company names in case their preferred name is unavailable.
The shareholders must determine the amount of capital to contribute to the company.
For a Spanish SL, the statutory minimum share capital is €1.
However, companies incorporated with less than €3,000 in share capital are subject to specific legal obligations, including reserve requirements and certain shareholder liability provisions.
Although a low minimum capital requirement makes incorporation more accessible, businesses should consider how much funding they realistically need to operate.
The company may also need to arrange evidence of capital contributions, depending on the incorporation procedure used.
The incorporation documents establish the company's legal structure and governance arrangements.
These typically include information about:
The documents should accurately reflect the intended business structure.
A Spanish limited company is generally incorporated through a public deed executed before a Spanish notary.
The deed of incorporation (escritura de constitución) records the company's formation and essential corporate details.
Shareholders or their authorized representatives may participate in the process.
Where permitted, a properly executed power of attorney may allow a representative to act on behalf of a shareholder.
A Spanish company requires a Número de Identificación Fiscal (NIF).
A provisional NIF may be obtained during the incorporation process, followed by the definitive tax identification documentation once the relevant requirements have been completed.
The NIF is used for tax registration and other administrative purposes.
The company must be registered with the relevant provincial Commercial Registry (Registro Mercantil).
Registration is a key step in establishing the company as a fully registered legal entity.
Once registration has been completed, the company can obtain official registration documentation for administrative, tax, and financial purposes.
Before beginning commercial operations, the company must complete the applicable tax registration procedures.
These may include:
Companies planning to trade with businesses in other EU countries may also need to assess whether registration in the relevant intra-community operator systems is required.
Once the company has the required documentation, it can apply for a business account to manage its financial transactions.
A dedicated business account can help the company:
Spanish companies may be eligible for traditional bank accounts or online business payment accounts offered by regulated financial institutions.
For businesses primarily operating in euros, a dedicated EUR IBAN with SEPA payment capabilities can be particularly useful.
Some providers allow eligible Spanish companies to complete the business account application remotely.
Companies hiring employees must complete the relevant employer registration and Social Security procedures.
Directors and working shareholders may also have personal Social Security obligations depending on their ownership, management responsibilities, and employment circumstances.
These requirements should be assessed before commercial operations begin.
Depending on the nature and location of the business, additional licences, permits, or administrative declarations may be required.
For example, certain activities involving retail premises, hospitality, construction, financial services, or regulated professions may require specific authorizations.
Requirements can vary by municipality, autonomous community, and business sector.
The documentation required depends on the legal structure and whether the shareholders are individuals or corporate entities.
For a Spanish SL, commonly required information and documents include:
Documents issued abroad may require translation, legalization, or an apostille, depending on the circumstances.
The cost of starting a company in Spain depends on the legal structure, incorporation procedure, and professional services required.
Potential expenses include:
The statutory minimum share capital for an SL is €1, but share capital is not the same as an incorporation fee.
Businesses should also budget for ongoing operating expenses, accounting, tax compliance, and other administrative obligations.
The time required to establish a company in Spain varies according to the incorporation method and the complexity of the application.
Straightforward incorporations using electronic procedures may be completed relatively quickly, while applications involving foreign shareholders, complex ownership structures, or additional documentation may take longer.
Factors affecting registration time include:
Spain offers electronic company formation procedures that can simplify incorporation for eligible businesses.
However, entrepreneurs should allow additional time for any tax registrations, business licences, and financial arrangements needed before trading.
Yes. Spain provides electronic incorporation procedures for eligible company structures.
The Centro de Información y Red de Creación de Empresas (CIRCE) system supports business creation through coordinated electronic procedures.
Depending on the incorporation method and the company's circumstances, certain administrative steps can be completed digitally.
However, not every company formation can be completed entirely remotely without additional verification or formalities.
Foreign entrepreneurs should confirm the procedures available for their particular ownership and management structure.
A dedicated business account is strongly advisable for companies operating in Spain.
It helps separate corporate finances from personal transactions and supports accounting, payment management, and financial reporting.
A Spanish company may be able to use an eligible European business account rather than relying exclusively on an account issued in Spain.
For companies trading across Europe, a EUR account with SEPA capabilities can support domestic and cross-border euro payments.
However, businesses should verify that the chosen account meets any applicable requirements for incorporation, tax payments, payroll, and other administrative obligations.
Yes. A Spanish company may be able to use an eligible European IBAN issued by a regulated financial institution in another EU country.
Under applicable European Union rules, certain forms of IBAN discrimination are prohibited for covered euro credit transfers and direct debits.
This means that a Spanish company does not necessarily need an IBAN beginning with ES for every commercial payment.
A European EUR business account can be particularly useful for companies receiving payments from customers or paying suppliers throughout the SEPA area.
However, companies should confirm that the account supports their specific transaction requirements.
Companies operating in Spain may be subject to several taxes depending on their legal structure, activities, and circumstances.
Spanish resident companies are generally subject to corporate income tax on their taxable profits.
The applicable rate depends on the company's circumstances and the tax rules in force.
Certain newly established companies and qualifying smaller businesses may be eligible for specific tax treatment.
Many commercial activities in Spain are subject to VAT.
Companies must determine whether they are required to register for VAT, charge VAT on their supplies, and submit periodic returns.
Special rules may apply to international transactions and particular business sectors.
Companies employing staff may be required to withhold employment taxes and make Social Security contributions.
Additional taxes, municipal charges, or industry-specific obligations may apply depending on the business.
Professional tax advice can help companies understand their specific obligations.
Yes. Foreign individuals can generally own shares in Spanish companies without being residents of Spain.
A non-resident may establish a Spanish SL, subject to the applicable identification, registration, and investment requirements.
Foreign ownership does not automatically create a right of residence or employment in Spain.
Entrepreneurs intending to relocate to Spain should separately assess the immigration rules relevant to their circumstances.
Yes. A Spanish company can conduct international business, subject to applicable trade, tax, customs, and regulatory requirements.
Businesses registered in Spain may provide services or sell products to customers in other EU countries and international markets.
For companies conducting euro transactions, access to SEPA payment services can simplify payments with European customers and suppliers.
Businesses should also assess any VAT, customs, reporting, or licensing obligations arising from international activities.
Establishing a company in Spain can provide several advantages.
Access to the European Market
Spanish companies can participate in the European Single Market, subject to applicable rules.
Established Legal Framework
Spain provides recognized corporate structures for entrepreneurs and investors.
International Business Opportunities
Businesses can serve domestic customers and expand into European and international markets.
Limited Liability Structures
An SL generally provides a separate legal entity and limits shareholder liability, subject to legal exceptions.
Digital Administrative Services
Electronic incorporation and online public administration services can simplify certain procedures.
European Payment Infrastructure
Spanish companies can access eligible EUR business accounts and SEPA payment services for commercial transactions across Europe.
Yes. Foreign individuals can generally establish and own Spanish companies, subject to applicable identification, registration, and regulatory requirements.
Yes. A Spanish SL may have a single shareholder, including a foreign individual or corporate entity.
Not necessarily. Non-residents can generally own Spanish companies, although residence, management, tax, and regulatory considerations may apply.
The statutory minimum share capital is €1. Additional legal rules apply when an SL is incorporated with capital below €3,000.
Yes. Eligible company formation procedures can be completed through electronic systems, although some circumstances may require additional formalities.
Spanish company law does not generally impose a universal Spanish-residency requirement on all company directors. However, identification, tax, Social Security, and other legal obligations may apply.
Yes. Non-EU citizens can generally establish companies in Spain, subject to applicable legal and administrative requirements.
Yes. Eligible Spanish companies can apply for online business accounts with financial institutions that support Spanish corporate customers.
Yes. Eligible European IBANs can support covered SEPA payments, although companies should verify their specific banking and administrative requirements.
Spain can be an attractive location for international businesses seeking access to the European market, although the suitability depends on the industry, business model, tax considerations, and operating costs.
Starting a company in Spain involves choosing the appropriate legal structure, preparing incorporation documents, completing registration procedures, and meeting the relevant tax and administrative obligations.
For many entrepreneurs and foreign investors, a Sociedad Limitada (SL) provides a practical structure for establishing a limited liability business in Spain.
Foreign individuals can generally own Spanish companies, and eligible businesses may benefit from electronic incorporation procedures and access to European payment services.
Once the company is established, arranging a suitable business account is an important step in preparing for commercial operations.
For companies primarily conducting euro transactions, an online EUR business account with SEPA payment capabilities can help manage customer payments, supplier transfers, and everyday business expenses.
Looking for a Business Account for Your New Company in Spain?
If you are establishing a company in Spain or already operate a Spanish business, explore online EUR business account solutions designed for eligible European companies.
A dedicated EUR IBAN with SEPA payment capabilities can help your company receive customer payments, pay suppliers, and manage euro transactions across Europe.
