The companies most demanded (and advisable because of simplicity and versatility) are Limited companies (Sociedad de Responsabilidad Limitada). They may be formed in about 15-20 days. A category of this type of companies is the “Sociedad Limitada Nueva Empresa”, which can be formed in 78 hours as long as certain conditions are met.
- 1) Requesting a corporate name. Three names may be requested in the Central Commercial Register (Registro Mercantil Central), in order of preference.
- 2) Once you have the corporate name, you must open a bank account in the name of the company (company under Creation). In this bank account the social capital of the company must be deposited (minimum, 3.000,00 €)
- 3) Drawing up the Articles of Association according to Law.
- 4) Preparation of the title deed and signature before a notary public. Inside the deed are the Articles of Association.
- 5) Requesting company tax code (CIF)
- 6) Calculation of taxes and payment (except tax exemption)
- 7) File the company in the Commercial Register. From this moment, the company has legal status.
All the partners must ask for the NIE at the Police Station (Número de Identificación de Extranjero -“Foreign Resident Identification Number”) and apply for registration in the AEAT: Agencia Estatal de Administración Tributaria: State Agency for Tax Administration.
We may carry out all these steps on your behalf. Ask for an estimate without obligation.
Limited companies. FAQs
Capital in cash must be deposited in the bank account of the company being formed. The current account will be opened in a Spanish bank, which will issue a certificate to show the notary public. Once the company is registered in the Commercial Register, the share capital will become available. Until then the money will be blocked.
For companies of small size (most frequently):
- 25% for the first EUR 120,202.41 of tax base.
- 30% for the rest of the tax base.
In general, operating through a permanent establishment is often problematic. The formation of a Spanish company is highly recommended, since it can benefit from higher tax deductions and favorable tax rates.
The social costs of the worker may vary depending on incentives to hire and the personal circumstances (age, social belonging, previous unemployment, etc.) By making an approximate calculation, we can say the social costs are a third of the total salary.
- The first 1.500 EUR of dividends are exempt from tax.
- The following 6.000 EUR are taxed at 19%
- The excess amount is taxed at 21%.
- A deduction is applicable to avoid double taxation.
If the partner is a foreigner and has tax residence abroad:
- He will pay taxes in the country of tax residence under its tax rules.
- Existing Conventions to avoid international double taxation will be applicable.
- General rate, 18%.
- Reduced rate, 8%.
- Super-reduced rate, 4%
Generally, the administrator must be registered as a Self-Employed worker and pay monthly contributions. Registration entitles him or her to enjoy the public health service, and make the minimum contribution to a retirement pension.
Minimum monthly contribution (self-employed):
- Minimum contribution with Temporary Disability included (850.20 x 29.8%): 253 euros / month approx.
- Minimum contribution without Temporary Disability (850.20 x 26.5%): 225 euros / month approx.