Your company in Spain: Step by step to form an SL
Are you thinking about investing and starting a business in Spain? Creating a Limited Company (SL) is one of the most popular and attractive options. This business model offers limited liability protection, a tax structure suitable for businesses of all sizes, and a relatively simple incorporation process compared to other legal options.
If you’re a foreign investor looking for ways to establish your business in Spain, this article is for you. Here, we explain, step by step, everything you need to know to efficiently establish your limited company, taking into account both the legal procedures and the associated costs.
1. Negative Name Certification
The first thing you’ll need to do is verify that the name you’ve chosen for your business is available. To do this, you must apply for a Negative Name Certification from the Central Commercial Registry. This ensures that no other company has the same name.
Approximate cost : Between €15 and €30
Estimated time : A couple of days.
2. Opening a bank account and depositing the share capital
Once your company name has been approved, you must open a bank account in the company’s name and deposit at least €3,000 as share capital. This money is not an expense, as it remains within the company and is used for commercial activity. You can also contribute share capital in kind (i.e., with tangible assets or real estate that add value to the company).
Approximate cost : There is no direct cost, since the money or asset contributed remains with the company.
Estimated time : One or two days, depending on the bank.
3. Drafting of the Bylaws
Bylaws are the set of rules that govern the operation of the company. If you have legal knowledge, you can draft them yourself, but you can also hire a lawyer to ensure everything is in order. Fees range from €100 to €300 , depending on the complexity.
Approximate cost : €0–€300
Estimated time : If you do it yourself, one day; if you do it with a lawyer, it can take about a week.
4. Public Deed of Incorporation before a Notary
To formalize your company, you’ll need to sign the Public Deed before a notary. This process has a cost that varies depending on the share capital and the notary’s fees. The general cost is between €150 and €350 .
Approximate cost : €150 – €350
Estimated time : A couple of hours.
5. Obtaining the Provisional NIF
A provisional Tax Identification Number (NIF) is required to operate legally in Spain. This procedure is free and can be completed directly at the Tax Agency.
Approximate cost : €0
Estimated time : A few minutes.
6. Registration in the Commercial Registry
To make your company completely legal, you’ll need to register it with the Companies Register . The cost depends on the province and the share capital, but typically ranges from €100 to €400 .
Approximate cost : 100 – 400 €
Estimated time : A few days.
7. Obtaining the Final NIF
After registration, you’ll need to obtain a definitive NIF ( Tax Identification Number) so your company can carry out all tax activities. This process is also free and can be completed at the Tax Office.
Approximate cost : €0
Estimated time : A few minutes.
8. Registration in Economic Activities and Tax Obligations
The next step is to register your company with the Treasury using Form 036. This form will allow you to comply with your tax obligations, and the process is free.
Approximate cost : €0
Estimated time : A couple of hours.
9. Registration with Social Security
If you’re the company’s administrator, you’ll also need to register with Social Security . Although this process is free, if you’re going to contribute as a self-employed person to the Special Regime for Self-Employed Workers (RETA) , you’ll have to pay a monthly fee. The options are:
- Flat rate (12 months) : €87/month
- Standard fee : €230/month (minimum base)
Approximate cost : €0 (if you do not contribute as a self-employed person)
Estimated time : A couple of hours.
Conclusion: Is setting up a limited company in Spain a good option for you?
As you can see, setting up a Limited Company in Spain is a fairly accessible process, both in terms of cost and time. While some steps require investment, the share capital is not a real expense, as it remains within the company. The most significant costs are notary fees, registration fees, and consulting services, if you decide to hire professional help.
Residence permits linked to business creation in Spain
If you are a foreigner considering starting a business in Spain, it’s important to keep in mind that setting up a company can open the door to different types of residence permits. However, the procedure and specific requirements may vary depending on your nationality, your personal situation, and the type of business project, so it’s essential to analyze each case individually.
Starting a business in Spain not only allows you to operate legally in the country, but can also serve as a basis for applying for a residency permit. The most common options include:
- Investor residency ( Golden Visa ), applicable if you make a significant investment in a Spanish company or other strategic assets.
- The residency for entrepreneurs , regulated by the Entrepreneurs Law, for innovative projects with an economic impact on the country.
- The authorization to reside and work for self-employment , if you are going to actively manage and work in your own business.
At MigratioLex , we analyze your profile and help you identify the most appropriate path to legal residency in Spain through business activity. We support you throughout the entire process: from setting up your company to applying for the corresponding residence permit, tailoring each step to your needs and goals.
Do you want to start a business in Spain? We’ll be with you every step of the way.
At MigratioLex , we help investors and entrepreneurs from all over the world create their own limited company in Spain and obtain the most appropriate residence permit for their profile.
We provide personalized advice and handle key procedures so you can focus on what’s most important: growing your project from day one.
Contact us and get started today with a solid legal foundation and a strategic vision.
