Company formation in Spain. #9 Advantages.
#9 ADVANTAGES OF FORMING A SL COMPANY IN SPAIN
WHY IS incorporating a company in Spain THE BEST OPTION?
How will it help you improve your company’s profitability in Spain?
Why is it the best option for you if you want to form your SL in Spain?
A Limited Company (LC – SL) based in Spain is your best option to do business in Spain.
According to the INE (National Statistics Institute) in 2018 there were 3 337 646 companies in Spain, of which 1 181 391 are limited companies.
That is, 35 % of the Spanish companies are Limited Companies.
ADVANTAGE #1: LIMITED LIABILITY – SOCIEDAD LIMITADA
The LC – SL is Spanish entrepreneurs’ favourite vehicle as it allows for the limitation of entrepreneurial liability to the capital contributed to the Company.
This a good reason for company formation in Spain.
You know how difficult and hard it is to get your business to make money, and business doesn’t always make money and, if they make it, they don’t always make it forever.
And what you cannot allow to happen, if the business goes wrong, is to lose that money which cost you so much to earn.
With the LC – SL, the risks are controlled and you will never lose more than what you have invested in the LC -SL .
With the LC – SL, your investments are protected.
ADVANTAGE #2: 100 % SPANISH COMPANY
The LC – SL with a registered head office in Spain is a 100 % Spanish company regardless of where you have your residence.
That is, you can reside in Australia, New Zealand, Papua New Guinea, Fiji, Samoa, Tonga, Solomon Islands, Micronesia, Vanuatu and Kiribati, United States of America or Canada, Jamaica, Barbados, Trinidad y Tobago, Bahamas and Guayana, India, Pakistan, Singapur, Philippines, Sri Lanka and Malaysia, United Kingdom, Ireland and Malta, South Africa, Nigeria, Cameroon, Kenia, Zimbabue, Ghana, Rwanda, Sudan, Botswana and Ethiopia, but your LC -SL will be a 100 % Spanish company.
With an LC – SL, your company will be as Spanish as any other Spanish company. It doesn’t matter where you’re from or where you live.
With an LC – SL, you will not have to change your tax residence to Spain, you can continue to reside in your country and conduct businesses in Spain.
With an LC – SL your personal life and that of your family is not affected by your business in Spain.
This the second reason for Company formation in Spain.
ADVANTAGE #3: YOU DON’T NEED A TAX REPRESENTATIVE
As the LC – SL is a 100 % Spanish company, you will not need a tax representative in Spain.
That is, you will not need a Spaniard to be responsible for your tax debts in Spain and you will not have to pay a Spaniard for it.
Banks and Insurers can be presented as a tax representative, but at a high price.
With an LC – SL you don’t need anyone to do you the favour of being your tax representative.
Your LC -SL in Spain does not need a tax representative in Spain.
Another reason for Company formation in Spain.
ADVANTAGE #4: ACCESS TO THE SPANISH MARKET
An LC -SL gives you access to the Spanish market.
This is the 4th reason for Company formation in Spain.
A market with a GDP per capita of USD 28 156.82 and a population of 46.57 million people.
The Spanish market is a dynamic and growing market.
In 2017, Spain grew to 3.1 %, while Portugal did grew to 2.7 % and Italy to 1.5 % (source: World Bank).
An LC -SL in Spain is a Spanish company and indistinguishable from any other Spanish company.
With an LC -SL, you will be able to compete on an equal footing with Spanish companies and enter a market full of opportunities.
An LC -SL in Spain can never be discriminated upon and any obstacle to doing business in Spain will disappear.
With an LC -SL in Spain, it is very easy to do business with other Spanish companies.
We have noticed that small Spanish businesses prefer to buy goods from Spanish companies, with an LC – SL in Spain, you will have a 100 % Spanish company.
ADVANTAGE #5: ACCESS TO THE EU MARKET
Spain is part of the European Union and a Spanish LC -SL is also a EU company, a European company.
Therefore, an LC -SL in Spain will open trade doors between EU countries and you can even trade within the EU.
B2B trading in the EU is exempt from VAT.
5th reason for Company formation in Spain.
To promote the free transfer of goods between EU member states, all B2B transactions for the purchase and sale of goods between countries in the European Union are VAT-free.
For example, you could buy eucalyptus wood or cellulose pulp from ENCE in Pontevedra (Spain) and sell it to an Italian who then sells it to a Portuguese person from Matosinhos (Porto), and all these eucalyptus wood or cellulose pulp transport operations from Pontevedra to Matosinhos will be VAT free.
ADVANTAGE #6: ONLY ONE PARTNER AND A SINGLE ADMINISTRATOR ARE NEEDED
This is a good reason for Company formation in Spain.
You can create the LC -SL by yourself. You don’t need anyone else.
The LC – SL can have only one partner and a sole administrator.
And you only need one thing! The NIE (foreign identification number).
The LC -SL is created very fast, you only need to go once to the Notary in Spain and your LC -SL will become constituted.
The process of setting up an LC – SL in Spain is complex, but with the right advice it will be very fast.
ADVANTAGE #7: ONLY EUR 3 000
This is the best reason for Company formation in Spain.
To create an LC – SL you only need to contribute with EUR 3 000 in share capital.
But you don’t lose these EUR 3 000, it is capital that you can then use in the LC -SL for your expenses.
This low capital requirement is one of the reasons that 35 % of Spanish entrepreneurs prefer the LC – SL as the right vehicle for their business in Spain.
ADVANTAGE #8: THE LC – SL CAN BE DEDICATED TO WHAT YOU WANT
The LC – SL can have the social objective and activity that you wish.
The LC – SL can be dedicated to one or more activities.
Therefore, an LC – SL can devote itself to all the activities that you want your company to have in Spain: trading, real estate, textiles, food, engineering, chemical sector… whatever you want.
The 8th reason for Company formation in Spain.
ADVANTAGE #9: THE NAME YOU WANT
The last, but not least reason for Company formation in Spain.
With an LC – SL, your company in Spain will have a professional and serious image.
And you can give your LC – SL the name you want, as long as it is not the same, or very similar to the name of another LC – SL that already exists in Spain.
When you request your name you will be able to choose 5 names in order of preference.
Choose the names well! The name of your LC – SL will be your company’s business card and they say that you don’t often have a second chance at a first impression.
Now that you know the advantages of an LC – SL in Spain, you only need someone to guide you safely in the process of creating your LC – SL in Spain.
For more than 10 years, we, as lawyers and accountants, have been advising entrepreneurs online how to establish their LC – SL in Spain.
But our service is not only online, it is also offline, and we will be your support in Spain, your partner, not only during the creation of the LC – SL, but throughout your business adventure in Spain.
As our client, not only will you constitute your LC – SL, but we will offer you all the fiscal, accounting and legal support you need to make your business in Spain a real success, without unexpected incidents and without surprises.
A network of more than 100 Spanish companies and professionals is looking forward to meeting you – and you are just one click away from getting to know them.
Frequently asked questions
Additionally, I want to be sure that you do not have any doubts about CREAR SOCIEDAD EN ESPAÑA, and because of this I will answer the most common questions that my clients usually ask me.
What will we do?
- Request all the necessary certificates on your behalf.
- Schedule appointments with the Spanish authorities on your behalf.
- We’ll stay by your side and assist you in 6 languages.
- If you need something, we will obtain it for you.
- We’ll let you know as soon as the company is ready.
- More than 85% of our clients create their own company in less than 7 business days.
How does the online company incorporation service work?
The online company incorporation service offers you the possibility of creating your own company in Spain for €577.00.
Once you purchase the service, we’ll send you an email with all the steps you need to follow to incorporate your company.
Can I make an inquiry prior to purchasing the company incorporation service?
Yes, by engaging the LEGAL INQUIRY WITH ÁLVARO SÁEZ service.
What does the payment of €577.00 include?
The payment includes:
- Request for company name.
- Assistance with the necessary formalities to incorporate the company.
Will you accompany us to the signing of the deed and other formalities?
Yes, you can also engage our accompaniment to the signing of the deed and all formalities.
What type of companies can you create online with this product?
You can create private limited liabilities companies (SL).
How much does it cost to create a company (SL)?
- Minimum share capital: €3,000.00.
- Other expenses: €400.00.
What are the main Taxes in Spain?
Income Tax (25%), Personal Income Tax and VAT (21%).
How much does a Social Security contribution of a worker in Spain cost?
Can a self-employed professional create a company in Spain?
Yes, but not with us.
What information do we need from you to create a company in Spain?
- Name of the shareholders and shareholding.
- Registered office.
- Share capital (minimum €3,000).
- Company object: the company’s activity.
- Five company names in order of priority.
- Payment of €577.
Must the company have an employee?
Yes, at the company’s headquarters.
What documentation do EU nationals need to create a company in Spain?
- DNI (Spanish National ID Card).
- NIE (Foreigner ID Number).
- What documentation do non-EU nationals need to create a company in Spain?
- NIE (Foreigner ID Number).
What payment methods can I use to pay for this service?
Credit/debit card (Visa-Mastercard-Tarjetero EURO 6000).
Will you take care of the accounting?
Yes, we’ll also take care of the accounting.
Do I need to travel to Spain?
It’s advisable because it speeds up the process and significantly lowers costs.
Do I need to have headquarters in Spain?
Yes, it’s required.
Will you help us find an office/headquarters/warehouse for the SL?
Yes, we’ll also search for offices/headquarters/warehouses through our network of collaborators.
Will you give us legal advice to avoid problems with the Spanish authorities?
SAEZ.LAW offers you all types of legal advice through its legal department.
Does SAEZ.LAW take care of everything?
SAEZ.LAW takes care of everything related to the incorporation of the company.
Must the director or any of the shareholders reside in Spain or be Spanish?
No, it’s not necessary.
Can the Company have a vehicle in its name?
Can the Company purchase properties or shares listed on the Stock Exchange?
Can the Company have a sole shareholder?