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 youre consideringcompany registration in Spain, this 2025 guide will walk you through everything you need to knowfrom legal requirements to types of companies, step-by-step procedures, costs, and common pitfalls.

Whether you're planning toregister a company in Spainas 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, its important to understandwhy Spain is appealing to entrepreneurs:

• Access to EU markets

• Skilled bilingual workforce

• Modern infrastructure

• Strong sectorslike tourism, tech, real estate, and renewable energy

• Residency opportunitiesthrough business setup

For non-EU nationals,opening a company in Spaincan 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 Annima (SA)Public Limited Company
   Suitable for larger businesses. Requires a minimum capital of 60,000.

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

4. Branch or Representative OfficeFor foreign companies expanding into Spain.

If you're a foreigneropening 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 aNmero de Identificacin 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

Youll need to request acertificate of uniqueness (Certificacin Negativa del Nombre)from theMercantile 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 aSpanish business bank accountand 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

Youll need to sign theDeed of Incorporation (Escritura Pblica)in front of aSpanish 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 theCdigo de Identificacin Fiscal (CIF)the companys tax identification number.

• This is done through theAgencia Tributaria (Spanish Tax Agency)

• Initially, youll 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 localRegistro Mercantilwithin2 monthsof 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 Tributariafor VAT, corporate tax, and other obligations

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

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:12 weeks

• On your own:35 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 fullyregister 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 employees gross salary

Companies must also:

• Filequarterly VATandannual returns

• Maintain properaccounting and payroll records

• Submit annual accounts to theMercantile 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, its highly recommended to work with alocal consultant or business advisor.

Benefits of Registering a Company in Spain

• EU market accessfor goods and services

• Spanish residency pathfor non-EU entrepreneurs

• Reputation and legitimacyfor international clients

• Competitive corporate tax rates

• Innovation grantsandstartup 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. Spains Digital Nomad Visa allows remote workers to live and work from Spain, and you can also start a business under this route.

Q3: Whats the best company type for a foreign investor?

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

Final Thoughts

Company registration in Spainin 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 toregister a company in Spainsmoothly. Your journey toopening a company in Spainbegins with knowledgeand now, youre equipped with the essentials.