Corporate Law

/Corporate Law
Corporate Law2018-10-18T20:25:02+00:00

Doing business in Spain?

Doing business in Spain?

Want to set up a company in Spain? Expanding your business into Spain?

Looking for English speaking lawyers in Spain to defend the interests of your business here?

AvaLaw assists corporate clients from all continents with their business in Spain. Our English speaking lawyers in Barcelona, Madrid, and the Balearics can save you a significant amount of time, money and head-ache by assisting you with setting up the business in Spain, optimizing the taxes, negotiating contracts, and providing support in any legal or administrative matter during the life-span of your business in Spain.

Watch our Corporate Lawyers Explain it all here

FAQs on Corporate Law in Spain

What are the steps to establish a limited liability company (“S.L”) in Spain?2018-06-19T19:22:39+00:00

1. Applying for the name of the company from the companies’ registry (el Registro Mercantil Central).

2. Applying for the NIE numbers for any foreign shareholders.

3. Getting anti-money laundering clearances, opening a bank account and depositing the share capital (minimum 3,000 euros).

4. Drafting the articles of association, including the address, the objective and the duration of the company, among other matters.

5. Signing the articles of incorporation in front of the notary.

6. Registering the company in the Companies’ Registry.

7. Activating the company before the tax authorities.

8. Applying for the social security code to be able to employ workers.

9. Applying for the EU VAT-number (if applicable).

10. Hiring an accountant to deal with the on-going matters for the company

What company form should I choose?2018-06-19T19:21:47+00:00

Operating as self-employed, so called “autonomo” is the least bureaucratic and fastest way to start a business. Only a notice for Tax and Social Security authorities are required to start a business as self-employed.

Instead of being a self-employed, you should consider setting up a company, normally an “S.L., Sociedad de Responsabilidad Limitada” if:

1. Your business involves several responsibilities, such as employees, financing, credits from the suppliers. In these cases the company protects your personal assets. The self-employed are personally liable for the risks and debts of the business.

2. There are numerous shareholders involved. In this case a company is a good tool to arrange the relationship between all the participants. Apart from the standard articles of association, we strongly recommend the shareholders sign a detailed shareholder’s agreement.

3. The revenue of your business is significant. The total tax bill can be lower for companies than for individuals in case of high revenue businesses. Each case is different. If you have doubts, please do not hesitate to ask Alejandro Puyo (alejandro@avalaw.es), our tax advisor, to go through the numbers for you.

4. You need to appear in the eyes of the customers or partners “bigger and better”. When you are self-employed, your name and ID number will appear on all official documents, such as the invoices as the provider. Sometimes setting up a company makes sense from a marketing point of view in order to give an image of a more structured business.

What are the TOP 5 challenges when opening a business in Spain?2018-06-19T19:21:07+00:00

1. Getting to know the market.
Spain is not actually one single market. The culture, consuming patterns, prices, etc. vary significantly between the different autonomous communities in Spain. What may work in Madrid, doesn’t necessarily work in Barcelona, Marbella or the Balearic Islands.

2. Structuring the business in a tax efficient way.
Choosing the right corporate structure and the optimum ways to import the funds to the company (capital vs. loan vs. participative loan), limiting your liabilities adequately; and drafting the agreements between the partners and shareholders carefully is a good start for conducting successful business here.

3. Tackling the bureaucracy.
You will see from day 1 that Spain is a very bureaucratic country. You better get to know the system before starting.

4. Timings.
Everything will take longer than you expect. If you have strict time constraints in your business plan, you should start the preparations well in advance of the due date, and prepare to double any estimations you may have given by the local partners or providers.

5. Recruitment.
It may be challenging to find and retain talent. We advise you to invest some time and money in the recruitment process.

Client testimonials

“AvaLaw helped Spheremania to establish our business in Barcelona and they assisted us with all kinds of contractual and legal issues. In our opinion, the quality of their work was excellent!
AvaLaw can make the most complex situations and procedures appear to be a walk in the park. The lawyers respond to telephone calls and emails quickly and effectively. Our main contact, Raisa Venermo, is always on hand and happy to go that extra mile to help. Her advice is clear and easy to follow and this is particularly useful when confronted with Spanish bureaucracy.
We would definitely recommend AvaLaw to other clients”

Anna Saxby & Davide van Vlijmen,

I came across AvaLaw a couple of years ago when we collaborated with an international company from London within the technology sector. Besides taking very good care of all the legal work, filling out all the legal documents professionally, we felt safe and guided very well through the process from A to C. AvaLaw is a very professional team and we would recommend them at any time for our partners in Spain”

Jacob Munch, Co-Founder, Munch & Strom

I have an import and export business based in Ghana in West Africa and in Barcelona. I bring foreign investors together with opportunities in the food sector in West Africa. From the beginning, I have decided to use AvaLaw because of their professionalism. I have been very impressed with the way they have been able to grasp the needs and objectives of my business right away”

Robert Strøm Owusu

Hi I’m Lourdes.

I’m specialized in international investments and corporate law.
Please don’t hesitate to contact me with any consultation.

Corporate Law – Contact
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AvaLaw Barcelona
Rambla Catalunya 25, 1-1
08007 Barcelona, Spain
Tel:+34 934 814 349

AvaLaw Madrid
Pº Castellana, 141 19
28046 Madrid, Spain
Tel:+34 934 814 349