It is easy for cross-border e-commerce sellers to register a company in Spain. However, it is very important to comply with local laws and regulations for Spanish company registration. Let’s learn about the Spanish company registration form and basic requirements.
1. Form of Spanish company
1) Branch Sucursal
The Spanish branch is just an extension of the foreign parent company. The board of directors must pass a resolution to establish a branch in Spain. Branch offices are also considered as subordinate offices of the main institution. Branches in Spain will need to pay a specific amount of corporate tax. In addition, they are required to pay quarterly VAT returns as per prescribed authority.
2) Limited Liability Company Sociedad Limitada
The liability of the entity is limited. This means that company members are not subject to any form of personal liability. The articles of incorporation and other laws relating to the company will form the requirements of company law (social law). The company’s annual accounts must be registered with the respective Companies Registry in Spain.
3) Joint Stock Company Sociedad Anónima
A joint stock company can be compared with a public limited company listed on a public stock exchange. This form of company can be listed on a public stock exchange. Companies must pay corporate tax. But dividends will also be taxed separately. Managers and directors are solely responsible for the management of the company. The company’s annual accounts must be registered with the respective Companies Registry in Spain.
2. What are the basic requirements for Spanish company registration?
The minimum capital required to register in Spain is 3,000 euros. There are no minimum capital requirements for setting up a branch in Spain. Setting up a branch in Spain only requires a resolution from the board of directors. The shareholders’ meeting will support the resolution.
There are no residency requirements for anyone registering a company in Spain. So, foreigners can own companies.
A branch with the lowest number of shareholders does not require a minimum number of shareholders. Public companies limited by shares and private companies limited by shares must have at least one shareholder.
A minimum number of directors is not required for branches with a minimum number of directors. In a limited liability company, the board of directors must consist of at least three members. A private limited company can appoint up to 12 directors. In a public limited company, the board of directors must consist of at least three members.