Setting up a Company

Not everyone who buys property in Spain does so for holidays or to settle into retirement. More and more people have dreams of starting a small business in Spain (or a large company!) Every year, however, a large number of expats give up on the dream and return home facing financial ruin. This is nearly always down to a lack of knowledge, unrealistic expectations and inadequate financial planning. It is vital to seek out expert legal, financial and tax advice if you are thinking about starting a business in Spain – and this is where we at Finco Financial Services can help.

There are several ways to set up a business in Spain. Choosing the best course of action is vital to your business’ success – it requires careful planning and depends on several factors, including the type and size of your venture and the potential market.

Finco Financial Services will advise you every step of the way – making setting up your business as easy and as fast as possible. Our prices are always competitive and our experienced advisers will tailor a solution designed to meet your exact needs as our client.

Registering an Autonomo (Self Employment)

If you are self employed in Spain you are known as an Autonomo. Setting up as an Autonomo is the most simple, and the fastest, way of starting a business in Spain.

If you want to start your own business and run it yourself then registering as an Autonomo is the best solution. Finco Financial Services can lay all the foundations for you – all we need is a copy of your passport, your NIE number and the details of your bank account. The first step is registration with the local tax office and registration for I.V.A. (VAT). After that, we would activate your status as self employed with the Social Security department. If you are employing staff, they will also need to be registered. In addition, we can deal with the paperwork for a business permit or licencia de aperture, which is essential if you have an office or other business premises.

Joint Ownership (Comunidad de Bienes)

If you are setting up a business in Spain with two or more co-owners then a Joint Ownership Company will need to be set up. Finco Financial Services can guide you through the entire process – with expert financial, legal and taxation advice, including drawing up a contract between all parties.

Limited Liability Company Sociedad de Responsibilidad Limitada (SL) and Sociedad Anonima (SA)

The main advantage of a Limited Company is that the liability of the shareholders of an S.L. company applies only to the debts, goods and capital that the company owns – not to the personal capital of the company’s owners.

The Limited Liability Company is generally the best solution when it comes to establishing a small or medium sized business. Basically, a Sociedad Anonima, or SA, equates to a UK or Irish public limited company ie. PLC, while a Sociedad de Responsibilidad Limitada, or SL, is equivalent to a private limited company limted by shares ie. Ltd.

The minimum capital required to form an SL company is fairly small – just over 3000 Euros – which must be deposited in full in a bank account in the name of the new firm in order to set up the company. A larger amount is required if you plan to set up an SA.

The process of setting up a corporation can seem daunting but the basic requirements are as follows:

• The Spanish Central Mercantile Register issues a certificate of clearance for use of the name of the new company. Once the name has approval we can continue with the incorporation of the company.
• A bank account in the company’s name must be opened and the required funds deposited in full.
• Execution of the notarised public deed of incorporation. A designated Notary will be required for this process and Finco Financial Services will prepare all the documentation required by the Notary’s office.
• Once the public deed of incorporation has been signed and approved by the Notary, the company will need to be assigned a tax identification number or CIF. This is an essential step in the process as it enables the payment of transfer tax and the registration of the company in the Mercantile Register.

If you are thinking of setting up a business in Spain it is essential that you seek out expert advice – at Finco Financial Services we can take you through each step of the process, answer your questions, and ensure that nothing is missed…leaving you to get on with making your business a success.

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