Setting up a business in Spain is an exciting opportunity for international entrepreneurs looking to expand their business presence in Europe. However, a common question arises: Do I need to travel to Spain to set up my company? The short answer is no, but there are some important considerations to keep in mind.
Remote company formation: Is it possible?
Thanks to advancements in digitalization and legal frameworks, setting up a business in Spain without being physically present is entirely possible. Many advisory firms, including ours, offer comprehensive remote services that handle the entire incorporation process on your behalf. Here’s how it works:
Key steps to incorporate a company without traveling to Spain
1. Granting a Power of Attorney (PoA)
To allow a legal representative or an advisory firm to act on your behalf, you will need to grant a Power of Attorney (PoA). This document must be notarized in your home country and legalized with the Apostille of The Hague (or through diplomatic channels if your country is not a member of the Hague Convention). With a PoA, your designated representative can handle legal and administrative tasks on your behalf, ensuring a smooth company set up process.
2. Obtaining a NIE (Foreigner Identification Number)
Every foreign shareholder or director of a Spanish company must obtain a NIE (Número de Identificación de Extranjero). This identification number is required for all tax and legal transactions. The NIE application can be processed through a Spanish consulate abroad or via an authorized legal representative in Spain, making it an accessible process for non-residents.
3. Registering the company name
Your business name must be officially registered with the Central Commercial Registry (Registro Mercantil). It is advisable to submit multiple name options to avoid delays if your preferred name is already taken. This step ensures your company’s name is unique and legally protected.
4. Drafting the Articles of Association
The Articles of Association (Estatutos Sociales) define the legal structure of your company, including shareholder agreements, company objectives, and governance regulations. This document must be drafted in accordance with Spanish corporate law and signed before a notary. If you are setting up your company remotely, your Power of Attorney will allow your legal representative to sign this document on your behalf.
5. Opening a business bank account
A Spanish business bank account is required to deposit the initial share capital. Some banks allow remote account opening, but others may require at least one visit by a company director or authorized representative. Additionally, different banks have varying compliance requirements, which should be clarified in advance.
6. Signing the Deed of Incorporation with a notary
Once all documents are prepared, a Spanish notary must validate the incorporation deed. If you have granted a PoA, your legal representative will sign this deed on your behalf. The deed of incorporation is then submitted to the Commercial Registry, finalizing the legal establishment of your business in Spain.
7. Registering for tax and Social Security obligations
Your company must be registered with the Spanish Tax Agency (Agencia Tributaria) and Social Security system. A fiscal representative can handle this process for you, including:
- Obtaining a CIF (Corporate Tax Identification Code)
- Registering for VAT (IVA) if applicable
- Enrolling in Spain’s Social Security system if hiring employees
By completing these steps, your company becomes fully operational and compliant with Spanish tax and employment regulations.
Additional considerations when setting up a business in Spain
Beyond the core incorporation steps, certain factors should be considered to ensure smooth business operations:
- Registered address: A physical address in Spain is required for official communications. Many advisory firms offer virtual office services to meet this requirement.
- Ongoing compliance: Spanish businesses must file annual accounts and tax returns. Partnering with an experienced advisory firm ensures compliance with all regulations.
- Licenses and permits: Depending on the industry, additional business licenses may be required. Researching specific sectoral regulations is crucial.
Advantages of setting up a business remotely
- Time-saving: Avoid unnecessary travel and expedite the process from your home country.
- Cost-effective: Reduce travel expenses and administrative costs.
- Legal compliance: Ensure all procedures comply with Spanish corporate regulations without personal intervention.
- Professional support: Benefit from expert advisory services that handle legal, tax, and operational matters seamlessly.
- Flexibility: Conduct business setup at your convenience without disrupting your current commitments.
When might traveling to Spain be necessary?
While setting up a business in Spain remotely is fully feasible, there are certain scenarios where a visit may be beneficial or even required:
- Banking requirements: Some Spanish banks may require an in-person meeting to open a business account.
- Business operations: If you plan to hire employees, secure office space, or meet with local partners, a visit could be valuable.
- Investor and residency visas: If your business qualifies for the Entrepreneur Visa or Golden Visa, personal presence might be needed for residency applications.
- Legal appointments: In some cases, direct legal or administrative meetings may be necessary to finalize certain aspects of your business setup.
Set up your business in Spain easily and safely
Setting up a business in Spain without traveling is entirely possible with the right expert support. By granting a Power of Attorney and working with experienced professionals, you can establish your company remotely. However, in some cases, an in-person visit may be advisable or even required.
Planning ahead and seeking expert guidance will make the process smooth and hassle-free.
If you need assistance with company set up in Spain, we offer a comprehensive service to handle everything for you. Plus, if you’d like a detailed guide on how to set up a limited liability company (SL) in Spain, check out our step-by-step article.
