What are the costs?
You can either choose our flat fee of 1200€ for company formation, or choose our offer of free company formation when you pay one year of our accounting service. For both options, all the costs to fully create and register your sociedad limitada are included. The notary fee, mercantile registry fee, stamp duty, and name certificate are paid by us.
We accompany you to sign at the notary’s office in either Barcelona, Madrid, or Tenerife.
Note that when you form a company in Spain, there are accounting and tax filing obligations. Keep this in mind when adding up the costs of establishing a company in Spain.
How long will it take?
Once you have your NIE, the following chart shows the time scale for the company to be fully established. Please contact us for more information.
As soon as you receive your tax ID, the company is a legal entity, and you may begin to invoice with the company.
|Task||Time to complete|
|Get the company tax ID (CIF)||1 day|
|Get the company deed||1 week|
What are the steps to form a company in Spain?
- We order the company name.
- We prepare your incorporation documents.
- You come to either Barcelona, Madrid, or Tenerife to sign at the notary. We can also sign on your behalf with a power-of-attorney.
- We send you your company tax ID (CIF). At this point, you can start invoicing your clients with the new company.
- We register your company at the Mercantile Registry.
What will I receive?
When you establish a company with us, you will receive the following:
- Company name certificate.
- Company deed, including shares, bylaws, and title of ownership.
- Company tax ID (CIF).
- Registration at the Mercantile Registry and publication in the Registry’s Official Bulletin.
- Form 600 (stamp duty) filed and paid.
- Form 036 (tax ID registration) filed.
We have a client area where these documents will be available. As soon as the first document is posted, we will send you the login information. If you use our accounting and payroll services, all related documents for these services will also appear in your client area.
Should I form a new company or buy a ready-made company?
With a ready-made company (“shelf company”), you save the step of registering a new name (4-6 days). The problem is that in order to register the change of company director, the mercantile registry can take longer than it takes to register a new company. The law stipulates that a new SL must be registered in 15 business days, but there is no time limit specified for changes to an existing company. The bank account won’t be in your name until the mercantile registry delivers the stamped company title, so if the use of a bank account is urgent, a ready-made company is not the best option.
What are the tax and accounting obligations for a company in Spain?
You are required to file tax forms every quarter, as well as yearly tax forms. You are also required to present the accounts to the Company Registry every year. These requirements hold true even if your company has no financial movement. See our accounting page for more information.
Can I avoid the trip to Spain?
Yes, you can give us a power of attorney with a Hague Apostille. However, in order to create a bank account, the banker will need to see you in person.
Will the company have a VAT number?
Yes, the company will have a Spanish tax ID (CIF), which is the VAT number. You will have the tax ID the day you sign at the notary. With the tax ID, your Spanish company can do business anywhere in the EU.
If the company will be exchanging frequent invoices with companies in the EU but outside Spain, then you may want to be listed in the EU VAT registry (censo VIES) so you won’t have to bill and be billed for IVA in your EU transactions. Please ask us for more details about this service.
What are the different types of tax ID numbers in Spain?
These are the terms used for the tax ID numbers for individuals and companies in Spain:
- NIE (Número de Identificación de Extranjero): This is the identification number in Spain for everyone who is not a Spanish citizen. Both EU citizens and non-EU citizens get issued a NIE. The NIE is not a fiscal residency identification; you can have a NIE and be fiscal resident in another country. The NIE number is needed in order to file taxes, buy property, establish a business, open a bank account, and for almost all other forms you fill out. When forming a company, everyone who will be directors and shareholders of the company will need a NIE. This is the first step in forming a company. The NIE consists of an ‘X’ or ‘Y’ followed by 7 or 8 digits then another letter.
- DNI (Documento Nacional de Identidad): This is the ID number for Spanish citizens. The same number is used for one’s driver’s license.
- NIF (Número de Identificación Fiscal): This is the generic term for the tax ID number for all individuals. For Spaniards, it’s the DNI plus one letter; for foreigners, it is your NIE.
- CIF (Certificado de Identificación Fiscal): This is the tax ID number for all companies. It consists of a letter followed by 8 digits. The letter represents the type of company, the most common being an ‘A’ for Sociedad Anónima or a ‘B’ for Sociedad Limitada. For companies nonresident in Spain, the letter is ‘N’.
- VAT number (Número IVA): This is ‘ES’ followed by the CIF. There is sometimes confusion with the term “VAT number”: While any valid CIF serves as a valid VAT number for the purposes of filing all tax forms and documents, getting listed in the EU VAT registry is a different issue — please read this FAQ for more information.
- Social Security Number: You apply for this number when you start your first job in Spain. This number then stays with you for all subsequent jobs. If you are self-employed, you apply yourself for this number.
- CCC Number (Código de cuenta de cotización): This is the employer’s social security number. Note that a foreign company can obtain a CCC number to hire employees in Spain. For more information, please contact us.
Do I need an address in Spain for the company?
Companies doing business in Spain are required to have a corporate address (domicilio) in Spain. Your SL will be registered at the provincial Mercantile Registry corresponding to this corporate address. It is the public address that shows up if anyone does a search on your company, such as a credit search or a search for judicial reasons. It is also where your year-end accounting books get sent to. If you choose to use our accounting service, then our address may be used for your corporate address.
What is the minimum capital required for the company?
The minimum capital required is 3000€. This money is put directly into the new bank account for the company. You may withdraw this money from the account as soon as the bank account is fully set up.
Why use Incwell to create my company in Spain?
We offer free company formation when you use our corporate tax filing services for one year. With 867 companies registered since 2004, we have the process streamlined, so we can pass you the best offer in Spain.
At each step in the formation of your company, your formation documents will be posted in your client area as they become available. Our service representatives provide phone and email support in your language.
Expertise with International Clients
We work exclusively with international clients. We know the issues that matter to you: establishing the proper relation between your parent company and your Spanish entity, getting a tax ID and social security ID for the company directors. In fact, the tax authorities request our input concerning international companies in Spain.
See why Incwell is the leader in company formation in Spain for international business people.