Company formation fees

Steps to set up a company in Spain

These are the steps in order to set up a limited company in Spain:

• Obtain foreigner ID (NIE)
• Obtain company’s name
• Share capital
• Sign before a Notary Public
• Obtain company’s Tax Id (VAT number)
• Register the company at the Commercial Registry
• Open bank account

OBTAINING A FOREIGNER ID (NIE)

Any person who wants to form a company in Spain must have a Spanish Id card (DNI). In case of being
a foreigner and not having a Spanish id (DNI), it will be compulsory to obtain a foreigner identification number, the so-called NIE. Bear in mind that the NIE is necessary for anyone who wants to be a director or shareholder of a company.

The NIE can be obtained, basically, in three ways

• The cheapest way is to go to the Consulate General of Spain in your country of
  residence and apply for the NIE. There you will fill out a form called the Ex15 and pay a fee. In
  theory, in about 10-15 days you will receive your NIE but it could take more time depending on the Consulate.

• Granting powers to a person in Spain. A power of attorney (POA) is prepared by us in order
  to obtain the NIE in your name. This POA must be duly legalized in your country in order to be
  accepted by the police in Spain. Once we receive the POA we obtain your NIE on your behalf.

• Go personally to the police offices in Spain and obtain the NIE. In this case, a prior
  appointment must be made at the State Secretariat of Public Administrations website. Bear in
  mind that in certain cities the previous appointments are scarce and they are giving
  appointments for 1-2 months. In this case you must also fill in the Ex15 form and pay the
  corresponding fee. We do not recommend this option.

In the event that you want to incorparte a company in Spain that is going to be owned wholly or partially by a foreign company (subsidiary company), the foreign company must obtain a Spanish non-resident Tax Id.

CHOOSE AND OBTAIN A NAME FOR THE COMPANY

The company you are going to create must have a unique name, a name that no other company has in Spain.

To avoid Spanish that companies have the same names, there is a registry, a Central Mercantile Registry, in which all existing companies are listed and to which you must ask if the name you want is available.

To do this, an application must be sent using the Central Mercantile Registry’s website, where you will
include five possible names for your company, sorted by order of preference.

SHARE CAPITAL

For the incorporation of the company, it is necessary that one or several individuals or companies
contribute with an initial equity to the company so that it can develop its activity. This equity may be
either in cash or in goods, or both. In exchange for these contributions, the partners receive the shares
of the company in proportion to what was contributed. The minimum share capital for a limited company
in Spain is EUR 1.

There are basically three ways to comply with the share capital requirement

• Monetary contributions in bank account. The share capital is deposited in a bank. The bank
  will open a provisional account in the name of the company, after the verification of the name of
  the company through the corporate name certificate issued by the Central Mercantile Registry.
  Once the share capital has been deposited, the bank will issue a share capital certificate.

• By just stating that the share capital has been paid: with this option you will not have to
  deposit the share capital. This possibility allows the shareholders to declare before the Notary
  that the share capital exists, without having to prove it. In this case the shareholders are
  personally liable for the amount of share capital allocated in case of unpaid company debts.

• Non-monetary contributions are those that can be valued economically. The assets have to
  be valued and described in the articles of incorporation.

SIGNING BEFORE A NOTARY PUBLIC

Once we have the NIE, the name of the company and have decided about the way in which the Share
Capital is going to be deposited, the shareholders and directors must go to the Notary to sign the deed
of incorporation.

Once the deed is signed the company exists and may start activities. However, until it is registered it
will not fully acquire its legal status.

COMPANY’S TAX ID (NIF)

The day after deed of incorporation has been signed, the notary will obtain the company’s Tas Id, named
NIF or also CIF. CIF is the old way to refer to NIF.

The NIF for limited companies is composed of a letter B followed by 8 numbers, i.e.: B12345678. This
number is your VAT number and must be present on all the documents the company issues and
receives.

REGISTRATION OF DEED OF INCORPORATION

Once the constitution of the company has been signed before a notary, it is compulsory to take the deed
to the Mercantile Registry to be registered.

For this it will be necessary to have obtained the Tax ID (NIF) of the company, which, in general, is
done by the Notary who will also submit the Transmission Tax which is tax exempt although the form
must be submitted.

The Commercial Registry has fifteen working days to register the deed.

OPENING AND ACTIVATING BANK ACCOUNT

In the case that you deposited the share capital in the bank account at the beginning of the process,
you will now have to take the registered deed to the bank in order to activate the account and receive
the online banking passwords.

In the event that at this point you don’t have bank account, the process is the same. You will have to
choose a bank and open an account showing the registered company deed.

Cost of setting up a Company in Spain

Setting up a company in Spain can be a straightforward process with the right assistance. We offer three comprehensive packages to help you establish your business efficiently. Prices start at €999 and, depending on the chosen plan, can go up to €2,950.

---