Forming a Spanish Company

Summary

Spain has a very sound economy and the potential to run a lucrative business is substantial. In the last two years we have formed companies in Spain for a varierty of different applications from selling furniture to satellite companies and restaurants. The country has a number of plus points and a few minuses too as outlined below.

Benefits:
The Weather
Real Estate is realistically priced
Relaxed Environment
Lots of business opportunities
Good Leisure Activities
Reasonable Cost of Living

Drawbacks:
The bureaucracy is horrific
Most government departments are inefficient
The legal system is appalling
It will be very difficult to operate without a reasonable knowledge of Spanish

Several of our staff have owned property in Spain for many years and take it from us it’s reputation for bureaucratic inefficiency is more than well deserved. The Spanish even have something called a Gestoria which is a company that deals with legal and administrative issues on your behalf. These companies arose because even the Spanish find the maze of paperwork rather daunting. The inefficiency means that companies like Telefonica (the Spanish Telco) and the local Town Halls (Ayuntamientos) can be unbelievably stressful to deal with. In my opinion the inefficiency has been elevated to an art form! Add in the fact a trip to the bank to pay in a cheque can take up a whole morning and that a simple visit to the Post Office to send a Registered Letter which takes 5 or 10 minutes here in Zurich can take up to an hour and it is not what I would term a relaxed environment! In spite of the drawbacks it is still a pretty good place to live and but it really is a case of accepting that the way it is cannot be changed. The delays, lack of punctuality and general inefficiency even drives the locals demented! Some parts of the country are better than others. For example Barcelona and Madrid seem fine but Malaga, Cadiz, Murcia and Valencia are very Manana, Manana. And don’t make the mistake of assuming it means tomorrow, play safe and work on the basis it simply means not today!

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What we offer when we set up your Spanish Company

Our service includes:

• A comprehensive evaluation of the particular circumstances and an assessment of the best way forward.
• Application for a certificate issued by the Mercantile Registry evidencing that the corporate name you intend to use is not already registered.
• Opening a bank account in Spain. Sometimes a stressful business but fortunately we have contacts in several major banks to ease the process.
• Filing the declaration of foreign investments in Spain.
• Drawing up the Deed of Incorporation
• Application for your C.I.F (company tax identification code) with the Spanish tax office.
• Filing the transfer and stamp duty tax form.
• Submitting a formal Declaration before the Spanish Tax Office to start the activity of the company.
• Filing the Spanish tax on economic activities form.
• Registration of the public deed with the Spanish Corporate Registry.
• Applying for the director's NIE, when applicable.
• Submitting the application for the opening license.

This service does NOT include:

• Notary costs.
• Costs by way of property transfer and stamp duty tax.
• Costs of deed Registration with the Spanish Corporate Registry.
• Other fees required by local authorities.
• Application of other licenses required to start operation of the company.
• Getting insurances required to operate the company.

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The total Cost of the formation is £1195 / US$2395 / EUR1495 including all items above.

Notes:
We can only apply for the directors' NIE no. if we receive a power of attorney and a copy of his/her passport to apply for it on his/her behalf. The process is quite straightforward and our Gibraltar office can email copies of the forms with a translation into English.