FREQUENTLY ASKED QUESTIONS

About Company Formation in Spain

When starting a business in Spain a number of questions may arise such as regarding registration process, Spanish legislation and many others. Whether you recently decided to form a company in Spain or you're already in the process of company formation, here you will find information that can help you start your business in the right way. Didn't find what you were looking for? Don't hesitate to ask our experts. Adm In ME is here to assist.

Prior to incorporating a company in Spain, you need to have at least one director and one shareholder. Both can be of any nationality. But there is one exception to this rule, it's necessary to appoint a resident company secretary. One more step before company registration - all directors and shareholders need to get a Spanish NIE (fiscal identification number). Minimal authorized share capital for a limited liability company is 3,000€. Public Limited Company need to have minimum 60,000€ capital. Fourth part of this capital must be paid before notarization, but the rest will be paid in accordance with established period. This information you can find in your documents of company incorporation.

Let's now analyze what are the strengths of each option. In case you buy a ready-made company, it saves you time as you don't have to register a new company's name. Usually it takes 4-6 days. But instead of that you have to wait until mercantile registry will change company's director. The incorporation of a new company takes 15 business days whereas there are no time limits required by Law for applying changes to an existing company. Moreover, you can't use your company bank account, until the mercantile register confirms the company's changes. In the interest of saving time, we recommend to register a new company.

No, it is not obligatory. If you don't have an opportunity to come to Spain, you will need to send us a letter of attorney. It must be notarized with a Hague Apostille. Moreover, if you don't have a bank account in country company resident, we can help you. Contact us to get more information.

  • Power of Attorney for company registration, both in Spanish and English, filled in, signed and apostilled as per Hague Agreement;
  • The Power of Attorney of the your company representative stamped/ apostilled as per Hague agreement (this usually can be obtained from the Chamber of Commerce or the Trade Office in the home country);
  • Company Incorporation documents in the home country signed and stamped as per Hague agreement;
  • Copy IDs of company representative (if there are more 1 legal representatives, we would need their IDs as well) signed and apostilled
Spain legal system obliges companies to submit tax forms every quarter, as also yearly. Besides, you have to present the financial reports to the Company Registry once a year. No matter if you had no financial movements throughout the year. Please, make sure that all the corresponding taxes are paid and up to date.
Companies have to register their name. It is important that it does not repeat the name of an existing company. In this case, the Commercial Register will not allow the registration procedure.
The next step is the preparation and certification of documents by notary. At this stage you will need to be present in Spain. In case you do not have the opportunity to come, contact our specialists and they will prompt how you can avoid it.
The final step is obtaining an Identification Number (Certificado de Identificación Fiscal). When it is ready, you can start your entrepreneurial activity as a newly formed company.

Yes, the process of forming a company includes also obtaining a Spanish tax Identification Number. This tax ID is also VAT. It allows you to conduct business in the whole of Europe.

Yes, indeed there are several types of identification numbers in Spain. Each of them is described below:
1. Número de Identificación de Extranjero (NIE). If the founder of the company does not possess the citizenship of Spain, but wants to establish a company here, he is given Número de Identificación de Extranjero (NIE). This ID allows you to do the following: create your company, open a bank account, apply for taxes and much more. At the same time, NIE does not oblige to be a financial resident of Spain. Receiving NIE is the first step in the incorporation of a company in Spain.
2. Documento Nacional de Identidad (DNI). can only be obtained by the citizens of Spain. It is also needed in order to obtain a driver's license.
3. Número de Identificación Fiscal (DNF). As such, there is no difference from NIE. This is the same identification number that is assigned to all taxpayers. For the citizens of Spain, it will be referred to as DNI, and for foreign entrepreneurs NIE
4. Certificate de Identificación Fiscal (CIF). Identification number, which is assigned to all companies. This identification number starts with a letter followed by 8 digits. By this letter you can determine which type the company belongs to. For example, if the CIF begins with A, then this is Sociedad Anonym. Under B will hide the Sociedad Limitade. All nonresident companies are given the letter N.
5. Número IVA (VAT number). This Identification Number is often confused with VAT registration. However, VAT Number serves for filing tax documents. It's the same CIF. If you are interested in VAT registration, please contact our specialists for more information.
6. The Social Security Number is assigned to you along with your first job. However, when changing the workplace, this number does not change. Make sure that you applied for the Social Security Number if you are self-employed.
7. Código de cuenta de cotización (CCC). This is the Identification Number of the employer's Social Insurance. If you are a foreign company, you can obtain this Identification Number in order to hire employees to your company. If you want to register your company as an employer, contact our specialists for more information.