The procedures for setting up a limited company in Spain are the following:
Foreigner ID number (NIE)- as applicant you should apply for it at the Spanish Consulate in your country of residence or police station in Spain.
Negative certificate of company name, a negative certificate of company name must be requested. This document certifies that the company name does not match an existing name, and it is obtained once you submit an official request with the names´ proposal before the relevant public authority. You may provide not more than five names proposal. Depending on the chosen way of response it may take between 3 days and 1 week.
Opening the bank account of the company being setting up. Once you receive the negative certificate of company name it is necessary to open a bank account in a Spanish bank entity under the name of the company being incorporated. Following the opening of the bank account you should proceed to transfer the company capital. The minimum share capital for a limited company is EUR 3,000. A certificate of such transfer of share capital must be requested from the bank.
Drafting of articles of association, which are the rules that will govern the company to be incorporated. Such articles of association will establish the name, company purpose, share capital, registered address, share regime of each shareholder, among other things.
Signature of the deed of incorporation before a Spanish notary public. You must head to a Spanish notary public´s office with the following documents: foreigner ID number, passport, negative certificate of company name, certificate of transfer of share capital and articles of association. The notary public will then write the memorandum of association and will sign it along with the shareholder.
Temporary CIF (Spanish Tax Identification Number). In order to apply for it you must submit the non-registered memorandum of association before the Spanish Tax Agency.
Property Transfer Tax: the incorporation of limited companies is currently exempt from the payment of Property Transfer Tax. However, you must still submit form number 600 requesting the exemption.
Registration in the Commercial Registry: the deed of incorporation of the company before the relevant Commercial Registry must be submitted within not more than two months as of the date of the signature of the company incorporation before a notary public (this is determined by the registered office of the company).
Census Declaration and final CIF (Spanish Tax Identification Number): following registration of the company in the Commercial Registry and prior to the start of the activity you must apply for the company´s final CIF before the tax agency as well as activation of the same by submitting the form number 036.
Self-employed: the administrator of a Spanish company has the obligation to register in the special regime of the Social Security of corporate self-employed. In order to do this you must submit form number 037 to the tax agency and immediately register in the Social Security by submitting the form.