Spain is an attractive location for business setup due to its developed economy and modern infrastructure. In 2022, country scored 60 out of 100 on the Transparency International Corruption Perception Index, ranking 35th out of 180 countries, indicating a moderate level of corruption. The government actively works to improve transparency & efficiency in public institutions. For IT companies, Spain offers several advantages: a skilled workforce, competitive business costs, and favorable environment for innovation.
Technology hubs in Madrid & Barcelona provide access to dynamic startup ecosystem and investors. Spain’s strategic position as a gateway between Europe, Africa, and Latin America offers extensive opportunities for market expansion.
Business structures in Spain
Entrepreneurs can choose from several types of business registration: SRL, SA, and SLNE. Based on our experience, SRL is the most frequently chosen form:
SRL (Sociedad de Responsabilidad Limitada) is the most common type of business in Spain, favored by small & medium enterprises with a limited number of partners. The number of participants can range from 1 to 5, with a minimum share capital of 3,000 EUR, which must be fully paid at the time of registration. Depending on the business type, fast setup is possible through electronic services. Founders are liable for the company’s obligations within the limits of its assets.
- Company name
- Main objectives and business activities
- Legal address for correspondence
- Date of commencement of operations
- Share capital amount
- Distribution of shares among board members
- Management structure
Requirements for establishing an SRL:
- At least one director of any residency
- Secretary (must be an individual, not a legal entity, regardless of residency)
- At least 1 shareholder must be a Spanish resident
- Bearer shares are not allowed
- Shares without nominal value are prohibited
Second business form is Sociedad Anónima (SA), which is suitable for large companies involved in trading shares or planning to change the composition of partners. Establishing an SA requires — 25% contribution to capital, with a total of 60,100 EUR:
- Minimum of 1 shareholder
- Liability limited to the company’s assets
- Key decisions are made at general shareholder meetings
- Shareholders can trade their shares on the open stock market
- Subject to corporate tax and additional tax on dividends
- Annual financial statements must be registered with the Commercial Registry
Third form is Sociedad Limitada Nueva Empresa (SLNE), designed for small and medium enterprises with up to 5 individual founders. SLNE offers a streamlined setup process:
- Registration can be completed within 2 business days
- Company name must include founder’s surname (alphabetically first) and SLNE abbreviation
