The most popular type of company in Spain is the limited company (sociedad de responsabilidad limitada, S.L.). As a rule, the partners' liability is limited to the capital they contribute. Law No. 18/2022 (Ley Crea y Crece), in force since 2022, reduced the minimum capital from €3,000 to €1. The incorporation steps are carried out by the notary, the commercial registry and the tax authorities in Spain; we prepare with you the decisions, documents and timetable these steps require.
Incorporation steps
- Company name: A certificate showing that the name is not used by another company (certificación negativa de denominación) is obtained from the Central Commercial Registry (Registro Mercantil Central). The name is reserved for six months; the certificate is valid for three months for signing the notarial deed
- NIE and tax numbers: Foreign individual partners and directors need an NIE, and foreign corporate partners need a Spanish tax number
- Paying in the capital: Cash capital is deposited in a bank account in the company's name, and the bank's certificate is attached to the deed. This certificate is valid for two months. If the founders accept in the deed joint and several liability for the capital actually having been paid in, the bank certificate may not be required
- Notarial deed: The deed of incorporation (escritura de constitución) and the articles of association are signed before a notary; the notary also takes the declaration on the company's beneficial owners
- Tax number: A provisional tax number (NIF) for the company is obtained from the tax authorities
- Entry in the commercial registry: The deed is registered at the commercial registry of the province where the company has its registered office; after registration the tax number becomes final
- Starting trading: Before trading starts, the tax authorities are notified; if there are employees, the social security registrations are completed
Where appropriate, incorporation can also be carried out through the electronic incorporation system (CIRCE).
Points to watch with €1 capital companies
As long as the capital stays below €3,000, two rules apply:
- At least 20% of annual profit must be allocated to the legal reserve until the reserve and the capital together reach €3,000
- If the company is wound up and its assets do not cover its debts, the partners are jointly and severally liable for the difference between €3,000 and the subscribed capital
Very low capital can cause practical difficulties when opening a bank account, signing a lease or dealing with suppliers. We decide the amount of capital with you according to your business plan.
Company or self-employed (autónomo)
If you will work alone and on a small scale, registering as self-employed may be simpler than setting up a company. This involves notifying the tax authorities of your activity (form 036) and registering with the social security scheme for the self-employed (RETA). People registering for the first time pay a reduced contribution for the first 12 months; as of 2025 this contribution is €80 per month. A self-employed person is liable for business debts with their personal assets. As income grows, a company structure may become more tax-efficient; this calculation should be made with a tax adviser (asesor fiscal) in Spain.
How it connects to residence permits
Setting up a company or becoming a partner in one does not, on its own, give the right to live and work in Spain. If you will work in your company in Spain, you need the entrepreneur permit, the self-employment permit or another permit suited to your situation. We therefore plan the company structure and the residence permit application together.
How we work with you
- We assess whether a company or self-employment suits your activity and your residence plans
- We decide with you the partnership structure, the amount of capital and the main provisions of the articles of association
- We prepare the applications for the name certificate, the NIE and the banking steps
- We prepare the documents needed for the notarial deed, and the powers of attorney to be granted in Türkiye, together with their apostille and translation
- We follow up the notary, commercial registry and tax authority stages, and prepare you for your meetings with your notary and tax adviser in Spain
Frequently asked questions
Do I need to travel to Spain to set up a company?
The deed of incorporation is signed before a notary. It is usually possible for a representative to sign the deed using a power of attorney granted in Türkiye, apostilled and translated. We prepare the scope of the power of attorney with you to meet the Spanish notary's expectations.
Will setting up a company give me a residence permit?
No. Being a company partner does not, on its own, give the right to reside or work. If you will live in Spain and work in your company, you also need an appropriate permit.
How much capital should I put in?
The legal minimum is €1. However, additional rules apply to capital below €3,000, and very low capital can raise trust issues with banks and business partners. We recommend setting the amount according to what your activity needs.
Can my company in Türkiye operate in Spain?
Yes. Your company in Türkiye can set up a new S.L. in Spain as a partner, or open a branch. The two options have different tax and liability consequences; we assess together which one suits you.
How long does incorporation take?
Once the documents are ready, the notary and registry steps are often completed within a few weeks. As obtaining the NIE and opening the bank account can lengthen the process, we plan these steps in advance.
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Requirements and amounts are updated every year. Your file is prepared under the rules in force on the day you apply.