Starting a Company in Spain
Your Wedding In Spain
List of Spanish-speaking Countries by Population
Starting a Sociedad Limitada in Spain
The Limited Liability Company, or Sociedad de Responsabilidad Limitada (denoted by SL), in Spain is a type of Spanish stock company. Like the Sociedad Anónima (SA), the SL is an autonomous legal entity and shareholders are not responsible for debts incurred by the company. The SL is especially suitable for smaller companies with a limited number of owners, and it is by far the most common business entity in Spain.
All sociedades must pay Company Tax (Impuesto sobre Sociedades). Yet the SL’s minimum required investment is considerably less than for a SA. (There are also different reporting requirements for each type of sociedad.) In addition, the SL’s shares cannot be traded on the stock exchange.
To start a SL in Spain, you will need to draft and notarize articles of incorporation and have a minimum available investment of €3,005.06. You will also need to register with the Commercial Registry in Spain (Registro Mercantil), request a CIF (Código de Identificación Fiscal, Tax Identification Code), register to pay IAE tax (Impuesto de Actividades Económicas), register with Social Security (Seguridad Social) for you and workers if you plan to hire some, and fulfill other obligations.
Income tax for small companies in Spain: 25%.