
Spain Company Formation
Introduction to Registering a Company in Spain. Spain Company Formation has one of the most robust economies in the EU, thanks to strong inward investment, a booming manufacturing sector and a liberal business environment. The country’s economic annual growth has been outperforming the EU average for a number of years and many foreign entrepreneurs and expats are benefiting from setting up a company in Spain. With a once-booming property market which has now cooled, Spain is a low-cost land of opportunity for foreign investors.
Types Of Companies in Spain
Choosing the right company type is crucial for your business success. At IBHUB, we help you select the structure that suits your goals and complies with spain regulations.
1.Public limited company (S.A.)
- Standard structure for large businesses
- Minimum share capital is €60,101.21, at least 25% paid up
- Minimum number of shareholders is one.
- Annual audit is required, subject to company size.
2.Private limited company (S.L.)
- Usual format for small and medium businesses.
- Minimum share capital is €3,000, all paid up
- Minimum number of shareholders is one
- Annual audit is not usually required
3. Sole Trader
- Owned and managed by one individual.
- Operates under the owner’s personal name or trade name.
- No separate legal entity – the owner and business are legally the same.
- Unlimited liability – the owner is personally responsible for all debts.
- Must register with the Spanish Tax Agency (Agencia Tributaria) and Social Security.
Advantages
1.Public limited company (S.A.)
- Limited liability – Shareholders are only liable up to their share capital.
- Large capital potential – Can raise funds by issuing shares to the public.
- Share transferability – Shares can be freely transferred or traded.
- Public credibility – Recognized and respected legal structure for large businesses.
- Can be converted to a joint-stock company (AG) if needed in the future
2.Private limited company (S.L.)
- Limited liability – Shareholders are only liable up to their capital contribution.
- Low minimum share capital – Only €3,000 required to start.
- Simple and fast registration process – Ideal for small and medium-sized businesses.
- Flexible structure – Suitable for individuals, families, or partners.
3.Branch office
- Simple and quick registration process.
- Low start-up and maintenance costs.
- Full control over business decisions and profits.
- No minimum capital requirement.
- Ideal for freelancers, consultants, and small businesses..
Is It Complicated to Set Up a Company in Spain?
While Spain has made significant progress in reducing bureaucracy and fostering a more liberal business environment, professional guidance is still essential when establishing a company.
At IB Hub, we specialize in company formation in Spain. Our experienced team will navigate the legal and administrative procedures on your behalf, ensuring a smooth and compliant setup process.
Get in touch with us today to explore how we can support your business expansion into Spain.
What about corporation tax for Spain Company Registration?
The Corporate Tax Rate in Spain stands at 25 percent. Corporate Tax Rate in Spain averaged 33.32 percent from 1981 until 2016, reaching an all time high of 35.00 percent in 1984 and a record low of 25.00 percent in 2016.
How easy is it to recruit staff in Spain for my company?
Spain’s long-running economic boom has put pressure on the labour market but unemployment remains relatively high. However, recruitment is rarely a problem for foreign companies seeking local staff. The workforce is well educated and flexible, labour costs are low and there are recruitment agencies throughout the country. We will be happy to refer you to our network of local recruitment specialists – please contact us.
How can I get more information on Spain Company Registration?
IB Hub offers a seamless company formation service to help you set up your business in Spain quickly and efficiently. With our associate office located in Barcelona, we provide direct local support and expert guidance throughout the entire registration process.
Our team handles all the legal, administrative, and compliance requirements—so you can focus on growing your business.
Contact IB Hub today to get started with your Spanish company formation.