Company Formation in Spain:
Setting Up an SL as a Foreigner

ALTEALEX — Company formation in Spain

How to Set Up a Company in Spain, Step by Step

The standard vehicle for a small or medium business in Spain is the Sociedad Limitada (SL), the equivalent of a private limited company. It limits your liability to the capital contributed and is the structure most foreign entrepreneurs end up using.

  • 1. NIE for every shareholder and director. Nobody can appear in a Spanish deed without a NIE number. This is the step that most often delays the whole process, and it can be obtained from your country through the Spanish consulate or by us under power of attorney.
  • 2. Company name reservation. We request a certificate from the Central Commercial Registry confirming your chosen name is available. Submitting several options avoids a rejection and a second wait.
  • 3. Bank account and share capital. The minimum share capital for an SL is modest, and since the 2022 reform a company can be incorporated with as little as one euro, subject to specific reserve obligations until the traditional threshold is reached. The capital is paid into a company account and the bank issues a certificate.
  • 4. Deed of incorporation before a notary. The articles of association are signed. This is the step we can complete on your behalf with a power of attorney, so you do not have to be in Spain.
  • 5. Tax identification and registration. The company obtains its CIF tax number, is registered for the taxes relevant to its activity, and is filed at the Commercial Registry, at which point it formally exists.

What You Should Decide Before You Start

  • The company object. The activity described in the deed determines what the company may legally do. Too narrow and you will need a costly amendment later; too vague and the Registry may reject it. We draft it with room to grow.
  • Who administers the company. A sole director, joint directors or a board — each option changes how decisions are signed and how quickly the company can act. For non-resident owners this choice has practical consequences every time a document needs signing.
  • The registered address. The company needs a Spanish registered office. It determines the competent Registry and the local tax office. For clients based on the Costa Blanca we normally register the company in the province of Alicante, though we incorporate companies anywhere in Spain.
  • What happens after incorporation. A Spanish company files quarterly and annual returns and must deposit its annual accounts. Setting the company up is a one-off task; keeping it compliant is ongoing, and we make sure you know what that involves before you commit. Once the company is running, our business and commercial law team handles the contracts.

Our Company Formation Service Includes

  • Obtaining NIE numbers for all shareholders and directors.
  • Reserving the company name at the Central Commercial Registry.
  • Drafting the articles of association and the company object.
  • Assisting with the opening of the company bank account.
  • Preparing and signing the deed of incorporation before a Spanish notary.
  • Acting under power of attorney so you do not need to travel to Spain.
  • Registering the company for the relevant taxes and activity.
  • Filing the company at the Commercial Registry.
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Frequently Asked Questions About Company Formation in Spain

Yes. With a power of attorney granted before a notary in your country and apostilled, we can carry out every step on your behalf, including signing the deed of incorporation before the Spanish notary.

Typically three to six weeks from the moment all shareholders have their NIE. The NIE itself is usually the longest step, so it is worth starting there. Rushed timelines are almost always constrained by consulate appointments rather than by the incorporation itself.

Since the 2022 reform an SL can be incorporated with as little as one euro of share capital, though until the company reaches the traditional threshold it must allocate part of its profits to a legal reserve. In practice many businesses still capitalise the company more realistically, because banks and suppliers look at it.

No. Non-residents can be shareholders and directors of a Spanish company. You will need a NIE, and there are tax consequences to consider in both Spain and your country of residence, which should be reviewed before incorporation rather than after.

It depends on turnover, the level of risk in your activity and whether you want to limit personal liability. For low-turnover, low-risk activities being autónomo is simpler and cheaper; where there is real commercial risk or several partners, a company is usually the better structure.