Setting Up Companies in Spain — WD Associés

Company Formation in Spain

Based in Paris. Service in English.

Your trusted partner for expanding into Spain

Spain is one of the European Union’s leading economies and an attractive destination for entrepreneurs and investors seeking to establish a presence in Europe. While the business environment offers significant opportunities, navigating administrative procedures and company formation requirements requires a sound understanding of the local system.

Since 2021, we have supported entrepreneurs and companies from a wide range of countries in establishing and expanding their operations in Spain. We understand the procedures, the timelines, and the common pitfalls to avoid, helping make the process efficient and straightforward.

Incorporated in 2–4 weeks with full support in English

“Geographical proximity makes doing business easier, but administrative procedures can still be complex. That is where a thorough understanding of the local system makes all the difference.”

4th
largest economy in the European Union
Since 2021
Supporting entrepreneurs expanding into Spain

Three ways to establish a presence in Spain

Before incorporating a company, it is important to choose the legal structure best suited to your project. There are three main options:

Extension

Branch

An extension of your parent company in Spain. It acts on behalf of the parent company, requires registration with the Commercial Registry, and a resident representative in Spain.

Main establishment

Subsidiary — Limited Liability Company (SL)

The most commonly used option. An independent legal entity subject to Spanish law. It requires a minimum share capital of 3,000 euros.

Large-scale projects

Public Limited Company (SA)

For larger-scale projects or those requiring access to external financing. It requires a minimum share capital of 60,000 euros.

Our support covers everything from obtaining the NIE (Foreigner Identification Number) to a fully operational company, including incorporation before a notary, registration with the Commercial Registry, and tax registration. The entire process is handled in English.

From initial consultation to an operational company

01

Initial consultation

We analyze your project, the type of activity, and the best structure suited to your objectives in Spain.

02

Obtaining the NIE

We handle and advise on the process of obtaining the Foreigner Identification Number (NIE) based on your situation, a prerequisite for any other procedure.

03

Preparing documentation

Coordination of the preparation of the articles of association, company name reservation with the Central Commercial Registry, and assistance with opening a corporate bank account.

04

Incorporation before a notary

Signing of the public deed and registration with the Commercial Registry. Deposit of the share capital.

05

Getting started

Tax registration (form 036), Social Security registration where applicable, and initial administrative obligations.

Setting Up Companies in Spain

What no one tells you before you start

The most common mistakes we see among entrepreneurs and companies seeking to establish themselves in Spain without specialized support:

Not obtaining the NIE in time. The Foreigner Identification Number is the first requirement for any procedure in Spain. Without it, you cannot open a bank account, sign before a notary, or complete the incorporation. Timelines that many underestimate can hold up the entire process.

Choosing the wrong legal form. Many entrepreneurs set up a Limited Liability Company when their activity would be better suited to another structure. Changing it later involves avoidable administrative and tax costs.

Failing to anticipate banking requirements. Opening a business account in Spain as a non-resident is more complex than it appears: banks require specific documentation, and delays can hold up operations from day one.

We assist entrepreneurs, investors and companies throughout the process of establishing and expanding their activities in Spain. With extensive knowledge of the local system, administrative procedures and business environment, we help our clients avoid common pitfalls and make the process as efficient and straightforward as possible.

English speakers in Paris, with a network of associates in Spain

We coordinate the company incorporation process in Spain from our base in Paris, working with trusted local professionals. This enables us to provide a seamless point of contact while coordinating every stage of the process.

We work in English, French and Spanish, making communication straightforward for international entrepreneurs and investors throughout the incorporation process.

Our support does not end once the company has been established. We continue to assist our clients by coordinating their ongoing administrative, corporate and tax-related requirements, working alongside the appropriate professionals whenever necessary.

Coordination of the entire process from Paris with associates specializing in Spain
Spanish team with specific training in corporate and tax law
Support in English throughout the entire process, from the first consultation
Setting Up Companies in Spain
2021

From Paris, in English

Can a foreigner set up a company in Spain?

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Yes. Both EU and non-EU citizens can set up a company in Spain. The essential requirement is obtaining the NIE. Non-EU citizens may need additional permits depending on their residency status.

What taxes does a company pay in Spain?

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Corporate income tax has a general rate of 25%. Newly created companies are taxed at 15% during the first two profitable financial years.

How long does it take to set up a company in Spain?

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The process takes between two and four weeks from completion of the documentation, including registration with the Commercial Registry.

What is the minimum share capital for an SL in Spain?

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Since the 2022 Crea y Crece Law, it is technically possible to set up an SL with 1 euro. In practice, banks and notaries still work with 1,000 euros as the recommended standard.

Is it necessary to be physically present in Spain to set up the company?

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Not necessarily. The process can be handled through a power of attorney granted in the country of origin, duly apostilled.