Spain is rapidly becoming one of the most prominent startup capitals in the world, the best business opportunities are those that individuals create. Many Spanish entrepreneurs are young and talented, this is all due to the increasing investment opportunities in Spain.
Spain is now the land for foreign investors seeking new opportunities to invest in business ventures. Spain is now the fourth most powerful economic country in Europe, boasting a $1.3 trillion Gross Domestic Product (GDP), and is now the fourth most populous nation.
Spain is also known for its laid-back culture and that’s one of the significant reasons to register your company in Spain. Eventually, once you become comfortable with doing business in Spain, you will begin to feel the benefits of the Iberian dream and realize that you made the right choice by investing in Spain.
This article will discuss all the reasons to register your company in Spain and show how Spain is the ideal place to move for business purposes. Let’s begin with the reasons to register your company in Spain.
Reasons to register your company in Spain
Down below we’ve listed numerous reasons to register your company in Spain. So without any further delay, let’s get started.
Limited liability - Sociedad Limitada (SL)
Spanish entrepreneurs prefer Limited Liability (SL) because it limits entrepreneurial liability to capital invested in the Company and this is one of the reasons to register your company in Spain.
- Getting your company to flourish is not simple.
- You cannot afford to let the business fail.
- The LC – SL is risk-free. You can never lose more funds than you have first invested in it.
- Your investments are protected with the LC – SL.
100% Spanish company
- The LC – SL is a 100% Spanish company with a registered headquarters in Spain.
- Your corporation will be Spanish-speaking with an LC – SL. Your location or where you reside doesn’t matter.
- An LC – SL will allow you to continue living in your country while you conduct business in Spain.
- Your business in Spain will not affect your personal or family life with an LC – SL, this is the other reasons to register your company in Spain.
You do not need a Tax Representative
- There is no requirement for a Spanish tax representative because LC-SL is a 100% Spanish corporation.
- This means that you don’t need to hire a Spaniard to handle your Spanish tax debts and you won’t have to pay for a representative too.
- Although banks and insurers can be used as tax representatives, it comes at a steep price.
- You don’t need to ask anyone to be your tax representative with an LC – SL.
- A tax representative is not required for your LC -SL in Spain, however, this is one of the main reasons to register your company in Spain.
Easy access to the Spanish market
- An LC -SL allows you to access the Spanish market.
- Spanish is a growing and dynamic market. 2017 saw Spain grow by 3.1%, Portugal by 2.7%, and Italy by 1.5%.
- An LC -SL is a Spanish corporation that is indistinguishable from any other Spanish corporation.
- An LC –SL will allow you to compete with Spanish companies, and open up new markets.
- A Spanish LC -SL can be used in Spain without discrimination and all obstacles to doing business in Spain will vanish.
- The easy access to the Spanish market makes it one of the prominent reasons to register your company in Spain with Spanish companies using an LC -SL.
- We found that small Spanish-owned enterprises favor doing business with Spanish suppliers. With an LC – SL Spain, you can have a 100% Spanish company.
Access the EU market
- Spain is a member of the European Union. A Spanish LC –SL is also a European company.
- An LC-SL in Spain can facilitate trade among EU members.
- VAT does not apply to B2B trades within the EU.
- All B2B transactions involving the sale and purchase of goods between EU member countries are exempt from VAT to promote the free movement of goods.
Only one partner and a single administrator are needed
- The LC –SL can be created by you. You don’t have to rely on anyone else.
- The LC – SL may have a single administrator and only a single partner.
- You simply require one item which is the NIE (foreign identification code)
- You can quickly create the LC -SL. All you have to do is go to the Notary in Spain once and your LC -SL should be constituted.
- Although the process of setting up an LC – SL account in Spain can be complex, it is very easy with the right advice. Our experts at Odint Consultancy can help you register your company in Spain.
Cost of setup of an LC - SL EUR 3000
- You only need EUR 3000 in share capital to create an LC – SL.
- These EUR 3000 are not lost, but you can use it in the LC –SL to pay for your expenses.
- The low capital requirements are one reason that 35% of Spanish entrepreneurs choose the LC – SL to be the right vehicle for their Spanish business and this is the best reasons to register your company in Spain.
Social activity for your Limited Company – (SL)
- You can choose the social activity and objective that you want for your LC-SL.
- You can dedicate the LC – SL to any one or more activities.
- An LC – SL can focus on all activities your company wants in Spain, such as trading, real estate, and textiles.
Opportunity to choose a preferable name
Another one of the important reasons to register your company in Spain is that your company will be able to project a professional image in Spain with an LC – SL.
- You can also give your LC – SL any name you like, provided it’s not identical or very similar to another LC – SL already in Spain.
- You can choose five names to be included in your request for your name.
- Be careful with the names! Your company’s business card will be the name of your LC – SL. They say you rarely get a second chance to make a good impression.
- You now know the benefits of an LC – SL Spain. All you require is assistance in developing your LC – SL.
Spain offers the perfect mix of infrastructure and skilled workers at lower operating costs than other countries in western Europe. The country also has a great maritime connection, which allows for smooth shipping to and from Spain.
Spain is also a major producer of food and beverages and could be an attractive location to do business in Europe. These are the various reasons to register your company in Spain.
If you planning to register your company in Spain, it is advisable to get assistance from Odint Consultancy professional experts, to help you in structuring your business in Spain.
To incorporate a company in Spain, it would take approximately a week and it is very easy to register a company in Spain.
Spain’s minimum capital requirement for company registration is EUR 3,000.
Every company requires at least one shareholder and the requirements for directors will vary depending on the needs of the company.
There is no requirement for a Spanish resident director to be appointed. A foreign director can manage the company.
Spain’s current corporate tax rate is 25%.
In Spain, indirect taxes like VAT will be collected and it would be charged at 11%
Azhar Ansari is a company formation specialist with 8+ years of expertise in international business. Financial planning, risk management, and other related areas.