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How to carry out a business in Spain through a Company?

In Spain is easy to start a business through a company. The globalization of the economy and the increase in technological advances have reduced communication and transport barriers, which has forced the commercial systems of the different states to seek a rapprochement. Along these lines, Spanish corporate commercial law has been subject to harmonization with European Union regulations, as the existence of a single market requires unified private law or, at least, that coincides in certain aspects.

A minimum capital is not required to incorporate a company in Spain

The legal structure of the companies are the general meeting of owners, which brings together all the shareholders of the company, and the administrative organization, which is the person -or persons- designated by the general meeting of shareholders for the management of the company.

The most common company in Spain is the Limited Liability Company, that can be incorporated by a sole proprietorship (so-called SLU).

Limited companies can be incorporated with a minimum capital of one euro. The liability of the partners is limited to the capital invested or, at least, to three thousand euros, because in the case of incorporation with a capital of less than three thousand euros, in the event of liquidation, if the assets were not enough to cover the payment of the social debts, the shareholders will be jointly and severally liable for the difference between the amount of three thousand euros and the figure of the subscribed capital.

Bookkeeping is an essential tool to provide financial information ant do manage the Corporation Tax

It is compulsory for the companies to submit their annual report of accounts to the Commercial Register, with accounting criteria that are in line with the regulation of the International Financial Reporting Standards (IFRS) adopted by the EU. Due to its status as a member country of the EU, Spanish accounting regulations are subject to European harmonization, which has been carried out under the International Accounting Standards (IAS) model.

Bookkeeping is an essential tool to manage the Corporation Tax. You can find further informatin about the tax management of a company in Spain here.

Do not hesitate to contact us if you need help in the incorporation of your company in Spain.
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