Main characteristics of a Limited Company in Spain

Company formation in Spain is a popular choice for entrepreneurs and businesses looking to expand in Europe. The most common and flexible option for starting a business is the Limited Liability Company (S.L.). This structure is ideal for small to medium-sized businesses due to its simplicity and the protection it offers to shareholders.

Why Choose a Limited Liability Company in Spain?

• Minimal Capital Requirement: You only need €3,000 to start a Limited Company (S.L.) in Spain. This capital can be in cash, credit rights, or real estate, making it accessible for most entrepreneurs.
• Limited Liability: As a shareholder, your personal assets are protected. The company’s debts are covered only by the assets contributed to the capital. This provides you peace of mind and security in your investment.
• Flexible Structure: An S.L. can have just one shareholder or an unlimited number of partners, allowing you to set up the company as an individual or with others.

Steps to Form a Limited Company in Spain

The process of company formation in Spain involves the following steps:

1. Choose a Unique Company Name: Ensure the name you select for your business is not already in use by another company.
2. Draft and Sign the Incorporation Deed: This must be done in front of a public notary in Spain. Our experts can handle the preparation and submission of all necessary documents on your behalf.
3. Submit the Documents to the Mercantile Registry: After notarization, the incorporation documents must be submitted to the Spanish Mercantile Registry.

Tax Obligations for Companies in Spain

Once your Limited Company is registered, it will be subject to Corporation Tax and Value Added Tax (IVA). Ensuring compliance with Spanish tax laws is crucial for the success of your business.

Our team at Adlanter offers comprehensive tax management services to help you navigate Spain’s tax system with ease. Get in touch to learn more about how we can assist with your company’s tax obligations.

Advantages of Setting Up a Limited Company in Spain

• Low Initial Capital: Starting with just €3,000.
• Liability Protection: Personal assets remain safe.
• Flexibility: Easy to add or remove partners as the business evolves.
• Simple Incorporation Process: Fast and efficient with the right support.

Want to know more about how we can simplify the company formation process for you? Contact us to speak with one of our specialists.

Opportunities and limitations of a Limited Company in Spain

OPPORTUNITIES	LIMITATIONS
It is ideal for small and medium businesses.	There are legal limitations when it comes to transferring shares.
It has a simple and flexible legal regime compared to other types of companies in Spain. It is easy to establish.	It is mandatory to carry out formal accounting, for which in many cases the help of an advisor is necessary.
The responsibility of the partners for company debts is limited to the capital contributed (except in certain specific cases established by the regulations).	The limited company is subject to certain procedures and fiscal and bureaucratic obligations.
The choice of the company name is governed by free will. However, there are certain limits.	These companies cannot be listed on the stock market, although in most cases this is never a real possibility.
The minimum share capital required for its incorporation is very low.	The partners are always identifiable.
You can contribute capital both in cash and in real estate, for example.
There is no minimum limit of partners required for incorporation.
There is freedom to make agreements and to pact between the partners.

While the Limited Company in Spain offers numerous advantages, it’s important to assess your unique situation. If you are unsure whether this is the best option for your business, our team can provide tailored advice.

Ready to begin? Fill out our contact form and take the first step toward establishing your business in Spain.