Legal entity types in Spain compared
We have expertise in helping entrepreneurs such as yourself understand the complexities of Spain’s business establishments. Through our thorough services, we can help you select the most suitable structure for your business and ensure compliance with all legal obligations. Let’s examine the different business structures in Spain and discuss how we can assist you in establishing your presence in this thriving European country.
Legal entities in Spain
Below is a summary of the most commonly used legal structures in Spain:
| Entity | Local name | Min. share capital | Management | Incorporation time (approx.) |
|---|---|---|---|---|
| Limited Liability Company | Sociedad de Responsabilidad Limitada | € 3000 | Directors | 10 days |
| Public Limited Company | Sociedad Anónima | € 60000 | Board of directors | 20 days |
| Newly Created Limited Liability Company | Sociedad de Responsabilidad Limitada de nueva creación | € 3000 | Directors | 14 days |
| Branch Office | – | – | Branch manager | 15 days |
| Holding Company | – | – | Board of directors | 10 days |
Limited Liability Company (Sociedad de Responsabilidad Limitada)
Many small and medium-sized enterprises commonly choose the Limited Liability Company. This flexible setup only requires a minimum capital of €3,000, making it a feasible option for numerous business owners. A major benefit of this structure is the limited liability it offers directors, relieving them of personal responsibility for debts. Our team can offer the necessary support and advice for registering this type of company in Spain.
Newly Created Limited Liability Company (Sociedad de Responsabilidad Limitada de nueva creación)
The Newly Established Limited Liability Company is a distinctive organization intended for new businesses in Spain. Its simplified registration procedure and limit of five shareholders make it a perfect option for small and medium-sized enterprises. one of its key benefits is that no initial capital is needed. we can assist you in establishing this innovative form of LLC in Spain.
Public Limited Company (Sociedad Anónima)
Big businesses often opt for the Public Limited Company because of its flexibility in share transfers and the confidentiality it provides shareholders. Requiring a minimum capital of €60 000, it is a significant investment but offers the benefit of easier partnership access and strong creditor protection. We are available to assist you throughout the registration process of your company in Spain.
Branch Office
A branch office is a branch of the parent company which enables it to operate in a different area while still maintaining its original legal status. Setting up a branch office in Spain can be beneficial for companies wishing to grow their business in the country without forming a distinct legal entity. By functioning as a branch, the parent company can utilize its established brand name and resources to enter new markets. We provide extensive assistance in navigating the complexities of establishing and overseeing a branch office in Spain, guaranteeing a seamless and lawful entry into the market.
Holding Company
A holding company, which is commonly used to control other companies by owning their shares, is a strategic entity. In Spain, creating a holding company can bring advantages such as centralized management, risk diversification, and tax benefits. By organizing your business as a holding company, you can effectively oversee several subsidiaries, simplify decision-making processes, and improve tax planning techniques. Our team of experts offers personalized assistance to assist you in forming and running a holding company in Spain, ensuring adherence to regulations and maximizing your corporate structure’s potential.
Requirements for starting the business
Let’s examine the necessary criteria for establishing any form of business entity in Spain and how our committed team supports you throughout the entire process.
Minimum share capital
Spain has minimum share capital requirements based on the business structure chosen. Our team helps determine the required minimum share capital for setting up your business and ensures compliance with regulations while maximizing your financial resources.
Directors and shareholders
In Spain, every company must have directors and shareholders. Our experts provide valuable guidance to help you choose the right directors who can bring their experience to benefit the company and align with your goals for the future.
Legal duties and obedience
It is essential to keep up with obligations such as registration, reporting, and tax requirements, from registration with the relevant authorities to ongoing reporting. Our legal team manages all administrative tasks to ensure full compliance, freeing you to concentrate on your core business operations while we handle the paperwork.
Book a consultation
The team makes an effort to comprehend your objectives, sector, and obstacles, which allows us to offer tailored assistance throughout the process of forming a business. With our expertise and commitment to offering excellent service, we assure a smooth and trouble-free path to establishing a profitable company in Spain. Don’t let the challenges of starting a business in Spain hold you back from success. Trust us, and together, we will help your firm reach its full potential. Start your path to success by reaching out to us today. Simply complete and submit the inquiry form below, and our experts will reach out to you.