Establishing a Company in Spain

Spain is located on the Iberian Peninsula of southwestern Europe. It is basically a kingdom, and still has a king that serves in a primarily representative role. Its neighbor to the west is Portugal, on its southern border it shares a boundary with the small area of Gibraltar, Morocco and the coast and on its northern borders are France and the tiny Principality of Andorra. In many respects, Spain forms the bridge from Europe to Africa, on the one hand extremely close to Western Europe and on the other hand, almost touching the northernmost beaches of the African continent. Spain also has an outlet to the Mediterranean Sea to its east and the Atlantic Ocean to its west and north, so for many reasons the establishment of a company there provides a range of economic and geographic possibilities.  

The capital of Spain is the city of Madrid where the official language is Spanish. Its currency is the Euro. Spain's population consists of approximately 47 million citizens. Apart from Madrid, the central cities are Barcelona, the capital of Catalonia, Valencia, Seville, Zaragoza, and Bilbao, the capital of Basque Country. The country's history is long and eventful, including centuries in which Spain was one of the world's strongest empires, a period of civil war, a time of dictatorship rule and finally the evolution to democracy and establishment of Spain as one of Europe's central and most powerful member states.

For Viewing Spain in Google Maps - Click Here

Three Things You Probably Didn’t Know About Spain:

  • The Spanish national anthem called the "Royal March", is one of the few anthems in the world with no lyrics at all.
  • One of Spain's iconic contributions to the world is the "siesta", that lull in which businesses close and everyone takes an afternoon nap. Today, very few shops actually close during those hours and for the vast majority of Spaniards this is an old tradition no longer observed, so that their work days resemble that of other Western countries. 
  • The Sagrada Familia, the impressive Catholic basilica of Barcelona, is one of Spain's most beautiful and fascinating sites. Designed primarily by the famous Catalan architect Antoni Gaudi, it is certainly a site worth a visit. However, few people know that construction of the basilica began in 1882, and while Gaudi dedicated forty years of his life to its design, it is still incomplete today.

Spain's Economy

Spain is a full-fledged member of the European Union and so represents an extremely significant element of the European economy. Naturally, it is also greatly impacted by changes within the EU. Per capita income is USD 34,900. The financial crisis of 2007-2008 was a turning point in Spanish economic history, and after fifteen years of above-average growth, Spain suffered a slowdown and then a crisis that lasted several years. The current economic climate is complex, but there are signs that Spanish economy is stabilizing and slowly recovering, specifically evident in the renewed interest of foreign investors in local markets. Despite the upheavals, Spain is still an attractive destination for investors from all over the world wishing to establish a company there.  

Spain maintains a capitalist economy that is ranked 16th in the world and 5th in Europe. Its central sectors are traditional industry, tourism, agriculture and fishing, energy and a developed financial sector that provides the necessary services for businesses, local and foreign.  

Mellius maintains a range of business activities and connections in Spain, providing our clients a variety of solutions for establishing a company there, as well as other business entities, their management and financial options for them.

Additional Information Regarding Establishing Companies in Spain:

General
Type of company
SL
Relevant Companies Law
Spanish Companies Act (Ley de Sociedades)
Offices
Not required
Language of original incorporation documents
Spanish
Finance and Taxation
Currency
EUR
Corporate tax rate
25%
Standard share capital
EUR 3,000
Office Holders
Secretary
Obligation to appoint company secretary
Not required
Obligation to appoint local secretary
Not required
Type of entity that may function as company secretary
Irrelevant
Director
Obligation to appoint company director
Required
Obligation to appoint local company director
Not required
Minimum number of directors
1
Type of entity that may serve as company director
Individual and/or company
Shareholders
Obligation to register shareholders
Required
Obligation to register local shareholders
Not required
Minimum number of shareholders
1
Type of entity that may register as shareholder
Individual and/or company
Type of shares
Registered shares
Accessibility of Information
Company registrar
Information regarding office holders accessible to the public
Annual Assembly and Reporting
Obligation to hold annual assembly
Required
Obligation to prepare financial reports
Required
Obligation to submit financial reports
Required