Company formation

Category Archive Company formation

Closing a limited company in Spain

INTRODUCTION

The process of closing a limited company in Spain consists of two phases. The first phase is called dissolution and the second liquidation. The objective of these two phases is the final closure of the company. It is important to understand that the beginning of the closure with the dissolution does not mean that the company is paralyzed, it simply enters a period (called the liquidation phase) in which the company has to dispose of the assets it has in order to proceed to the final closure. During this period, the company’s objective stops being that of obtaining profit and becomes the final closure.

 

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Company formation Spain

Steps to establish a Limited Company in Spain [2 of 2]

….. Read part 1

OTHER THINGS TO TAKE INTO ACCOUNT

If you do not have Spanish ID

Any person who wants to form a company must have a Spanish DNI. In case of being a foreigner and not having a DNI, it will be essential to obtain a foreigner identification number, the so-called NIE. It is important to bear in mind that the NIE is necessary for anyone who wants to be an administrator or partner of the company. In the case of which one of the partners is another company, it must obtain a Spanish Tax ID (NIF).

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Company formation Spain

Steps to establish a Limited Company in Spain [1 of 2]

Do you want to start your own business in Spain? Do you need to create a Limited Company for your business?

 

These are the steps to follow:

CHOOSE AND OBTAIN NAME OF THE COMPANY

The company we are going to create must have a unique name, a name that no other company has. To avoid that two companies have the same name, there is a registry, Central Mercantile Registry, in which all existing companies are listed and to which we must ask if the name we want is free.

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Professional services firms in Spain

It is common among professionals the existence of companies in which several professionals come together for various reasons such as sharing the benefits of their work, share expenses without revenue sharing or to have a corporate image, although the services are provided by each professional individually.

These companies are not considered professional services companies, since its foundational purpose is not the provision of professional services.

For a company to be considered as a professional company it must comply with the conditions explained below.

Professional companies can be both limited partnerships and civil companies, cooperatives, corporations, etc.

Professional companies established in other EU countries can also be recognized in Spain.

 

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Applying for your company name

Once you have decided that you are going to start your company formation in Spain process, you have to know that every company in Spain has a unique name. The public entity that authorises the company name is the Registro Mercantil Central.

This step can be done at the same time as the NIE application, given that, the NIE is not necessary for this purpose. The application is filed to the Registro Mercantil Central (Central Commercial Registry) in Madrid.  The application will include:

 

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