Setting Up A Business in Spain Has Been Simplified Considerably

Published on 5/3/2011 in Working in Spain

In the current economic climate it is important to make the process of setting up a company and the paperwork involved as simple, fast and dynamic as possible, to establish and make the business as competitive as possible, as soon as possible.

With this aim in mind, the RD-Law 13/2010 was approved on the 3rd of December 2010 containing several measures to streamline the process of setting up a company, making it much faster and easier. These measures affect primarily Spanish Limited Liability Companies (S.L.) these being the most used in practice, although the new law distinguishes between different types of companies, etc.

In Article 5 the new law states the possibility to reserve the company name online, directly from the Central Companies House (Registro Mercantil Central). Once the Deed has been signed to set up the company then this can also be referred online to the corresponding Company House where the Registrar must qualify and register the Deed of the company within a very short time period (see below) providing that there are no incidents or mistakes in the documents received.

Registro Mercantil CentralThis Article also provides the possibility to obtain online the temporary tax number (NIF or CIF) from the Spanish State Tax Administration Agency (AEAT-Hacienda). And then once the company has been registered at the Companies House, the AEAT will notify the definitive NIF to the notary and registrar.

The constitution of an S.L. will be fastest providing it has the following factors:

a) The company's capital should not exceed 3,100€.

b) The company’s articles should adapt to the approved standard regulations.

c) The company’s shareholders must be individuals and not companies.

d) The company should have a single administrator-director, or joint administrators or 2 joint co-directors (mancomunados).

For companies fulfilling all the above details the time for the Registrar at the  Companies House to qualify and register the deed and the company is a maximum of 7 hours, so in theory the whole process could be completed in just 1 day.

Thus as previously mentioned these changes mean a great amount of saved time in reserving the company name, granting the Deed, obtaining the CIF number and registration of the company at Companies House.

If you want to set up a Company Spain and you require our advice, please do not hesitate to contact us.

The information provided on this article is not intended to be legal advice, but merely conveys general information related to legal issues.

Written by: White & Baos Lawyers

About the author:

White & Baos is a law firm established by Spanish and UK lawyers, and is regulated by the Law Society of England & Wales as well as the Spanish regional equivalent, the Colegio de Abogados in Alicante.  They are one of Eye on Spain's few recommended lawyers.

Calle Diana No. 19. 2º-D, 03700 Denia, Alicante
Tel.: +34 966 426 185
Fax.: +34 965 784 471
Email: info@white-baos.com
Website: www.white-baos.com




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