If you are thinking of starting a business in Spain, you will probably be deciding between starting up as self employed (autonomo) or creating a Limited Compamy (Sociedad Limitada) as these are the most common options.
Previously, many people started as autonomo and eventually progressed to an SL. The main reason for this was the high cost of starting an SL and the accounting expenses associated with the SL.
The expensive option of starting a business in Spain as an SL is no longer …
We are pleased to announce our new “Express SL” (Sociedad Limitada) Service for starting a business in Spain.
So, how do you start an SL in Spain with our help?
The following are a brief summary of the steps we will take you through …
1. Choose a Company Name.
This will be the official name for the SL but does not necessarily need to be the operating / promotional name.
Submit 5 choices of name, in order of preference.
A name must be unique and must not resemble a name that has already been registered.
Note: Names containing only one word are often rejected.
2. Option to Trademark the Company Name*
Upon acceptance of a name, you have the option to protect the name. ie. trademark. (*please note this is an additional cost)
3. Injection of Capital
To constitute the SL, you are required to inject capital, to the value of €3000, into the business. This can be in the form of cash paid into a bank account which is frozen until the SL is fully registered and functional or in the form of an “aportacion no dinerario” which can include items such as computers, office furniture or vehicles.
4. Preparation of Company Deeds
Once the injection of capital has been documented, the next step is to visit the notary to prepare the Company deeds (escritura).
At this point, you must be clear who will be listed as the Company administrator/s and shareholders and how the shares will be divided. There can be as many shareholders as desired however it is advisable to limit administrators to one (unipersonal) or two people (solidario o mancomunado).
The Company’s activities must also be listed in the deeds. Our business advisor will assist you with this as CHANGES are very costly!
NOTE: The administrator is required to be registered and contributing to the social security system.
5. The Notary
Once the deeds have been signed by the administrator(s) and shareholders, the notary will register the Company with the tax office (Hacienda), acquire the Company’s Tax number (NIF) and register the Company with the Spanish equivalent of company’s House (Registro Mercantil).
6. Accounting and Reporting Obligations
Our accountants will advise you on a personal basis regarding the day to day obligations of your new SL. With our attention to detail and excellent customer service, you can rest assured that everything will be taken care of for you.
Some important points to remember ….
- The Spanish tax office (Hacienda) does not send notifications via the post. Hence, it is vital to obtain a Certificado Digital for the Company. This allows you to access the notifications published on the Hacienda’s website.
- It is advisable to check for notifications at least every 10 days. For example, if you are required to present any documentation at Hacienda, you will be notified via the website. If you miss the date you are likely to receive a fine. You cannot claim that you were not advised. It is your (or your assessor’s) duty to check this information!
- It is essential that the accounting procedures are adhered to and accounts and reports submitted on time to avoid costly penalties.
- Subject to how many “employees” you have, there are different contract options available to you. Our business advisor (assessor) will advise you about this on an individual basis.
So, how much does it cost to set this up?
Previously, set up costs have amounted to 2000 to 3000€ euros plus monthly accounting fees of around €250.
Our new “Express SL Set Up and Accounts Management” costs…
SL Set Up**: From Only €750* (plus notary fees approx. €450)
Accounting Packages: From only €165* per month
(*all prices exclude IVA )
(**SL Set Up at reduced rate available only with minimum 12-month accounting package)
So, if you are thinking of setting up a business in Spain, contact us now.
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