How to implement a company in Spain?
Depending on the type of company you set up, you will need to fulfill Spanish regulations with regard to accounting, auditing and tax filing. Choosing the type of entity and determining its relationship with the parent company (if there is one) or international shareholder requires knowledge of Spanish mercantile law. In our experience, having the proper setup with help from professionals will save you money and time in the end. For example, changing the company director can take more time than forming a new company.
Types of business entities in Spain
The following chart summarizes the different types of business entities. In most cases, the choice is between Sociedad Limitada and Sociedad Anonima.
|Business Type||Liability||Number of Partners||Backing Capital||Taxation|
|Empresario individual (self-employed)||individual||1||not required||individual income tax, VAT tax|
|Sociedad Limitada (limited-liability company)||corporate||1 to 50||minimum 3000€||corporate taxation|
|Sociedad Anónima (corporation)||corporate||1 or more||minimum 60,102€||corporate taxation|
|Sociedad Colectiva (co-partnership)||corporate||2 to 50||0 – 250,000€||corporate taxation|
|Sociedad Cooperativa (cooperative)||corporate||3 or more (if Cooperativa Laboral, 1 must be a Spanish citizen)||minimum 25,000€||corporate taxation|
|Sociedad Limitada Laboral (limited partnership)||corporate||3 or more (1 must be a Spanish citizen)||minimum 25,000€||corporate taxation|