A Complete 2025 Guide to Registering a Company in Spain

Spain is a top destination for entrepreneurs, digital nomads, and investors looking to enter the European market. Its vibrant economy, skilled workforce, and favorable location make it an attractive spot for starting a business. If you’re considering company registration in Spain, this 2025 guide will walk you through everything you need to know—from legal requirements to types of companies, step-by-step procedures, costs, and common pitfalls.

Whether you're planning to register a company in Spain as a resident or a foreign investor, this blog will give you clarity and actionable insights.

Why Consider Opening a Company in Spain?

Before diving into the technicalities, it’s important to understand why Spain is appealing to entrepreneurs:

• Access to EU markets

• Skilled bilingual workforce

• Modern infrastructure

• Strong sectors like tourism, tech, real estate, and renewable energy

• Residency opportunities through business setup

For non-EU nationals, opening a company in Spain can also serve as a path to residency through the entrepreneur or investor visa routes.

Step-by-Step Guide to Registering a Company in Spain

Step 1: Choose the Right Company Structure

Here are the most common business entity types:

1. Sociedad Limitada (SL) – Limited Liability Company
   Best for small to medium businesses. Requires a minimum capital of €3,000.

2. Sociedad Anónima (SA) – Public Limited Company
   Suitable for larger businesses. Requires a minimum capital of €60,000.

3. Autónomo – Sole Proprietor
   Ideal for freelancers or solo entrepreneurs. Less bureaucracy but full personal liability.

4. Branch or Representative Office – For foreign companies expanding into Spain.

If you're a foreigner opening a company in Spain, an SL (Sociedad Limitada) is usually the most practical option.

Step 2: Obtain NIE Number

All founders, whether Spanish or foreign, must obtain a Número de Identificación de Extranjero (NIE). This tax ID is essential for any legal or financial activity in Spain.

• Apply through a Spanish consulate or at a local police station.

• Required for opening a bank account, signing documents, and registering your company.

Step 3: Choose a Unique Company Name

You’ll need to request a certificate of uniqueness (Certificación Negativa del Nombre) from the Mercantile Registry (Registro Mercantil Central).

• Can be done online

• Reserve 3-5 names to increase approval chances

• The certificate is valid for 3 months

Step 4: Open a Business Bank Account

You must open a Spanish business bank account and deposit the initial share capital:

• Minimum €3,000 for an SL company

• The bank will issue a certificate confirming the deposit

• Required for company incorporation

Step 5: Draft and Notarize the Company Constitution

You’ll need to sign the Deed of Incorporation (Escritura Pública) in front of a Spanish notary. This document includes:

• Company name

• Business activity

• Shareholder details

• Articles of Association

All founding members must be present or represented via power of attorney.

Step 6: Obtain Your CIF (Company Tax ID)

After notarization, apply for the Código de Identificación Fiscal (CIF)—the company’s tax identification number.

• This is done through the Agencia Tributaria (Spanish Tax Agency)

• Initially, you’ll receive a provisional CIF, then a permanent one once registration is complete

Step 7: Register with the Mercantile Registry

Your company must be registered at the local Registro Mercantil within 2 months of signing the Deed of Incorporation.

• This step legally recognizes your company

• Registration fees vary depending on your capital and region

Step 8: Register for Tax & Social Security

You must enroll your business with:

• Agencia Tributaria for VAT, corporate tax, and other obligations

• Social Security (Tesorería General de la Seguridad Social) if hiring employees or working as an autónomo

Also Read: Documents Required for Company Registration in Oman

Costs of Registering a Company in Spain (2025)

How Long Does It Take?

• With professional help: 1–2 weeks

• On your own: 3–5 weeks

Delays can occur if any documents are incomplete or if translation/authentication is required.

Can Foreigners Register a Company in Spain?

Yes! Both EU and non-EU nationals can fully register a company in Spain. However, non-EU nationals must ensure:

• Valid NIE

• Compliant visa/residency status (entrepreneur visa or investor visa if applicable)

• Power of Attorney if setting up remotely

Taxes and Compliance

Key Tax Obligations:

• Corporate Tax: 25% (Reduced to 15% for new businesses during the first 2 years of profits)

• VAT (IVA): 21% standard, with reduced rates for certain goods/services

• Social Security Contributions: Around 30% of employee’s gross salary

Companies must also:

• File quarterly VAT and annual returns

• Maintain proper accounting and payroll records

• Submit annual accounts to the Mercantile Registry

Common Mistakes to Avoid

1. Not obtaining an NIE before starting

2. Using an already registered company name

3. Failing to open a Spanish bank account early

4. Skipping professional legal/accounting help

5. Not meeting deadlines for registration and taxes

To ensure smooth company formation, especially for non-residents, it’s highly recommended to work with a local consultant or business advisor.

Benefits of Registering a Company in Spain

• EU market access for goods and services

• Spanish residency path for non-EU entrepreneurs

• Reputation and legitimacy for international clients

• Competitive corporate tax rates

• Innovation grants and startup ecosystem support

FAQs

Q1: Do I need to live in Spain to open a company?

No. You can incorporate remotely using a legal representative or power of attorney.

Q2: Can I register a company in Spain as a digital nomad?

Yes. Spain’s Digital Nomad Visa allows remote workers to live and work from Spain, and you can also start a business under this route.

Q3: What’s the best company type for a foreign investor?

A Sociedad Limitada (SL) is typically the best choice due to flexibility, limited liability, and straightforward setup.

Final Thoughts

Company registration in Spain in 2025 is more accessible than ever, especially with digital processes and growing support for startups. Whether you're a local entrepreneur or a global investor, the country offers a solid foundation for business success.

Make sure to follow all legal steps, comply with tax rules, and consider professional guidance to register a company in Spain smoothly. Your journey to opening a company in Spain begins with knowledge—and now, you’re equipped with the essentials.