THE ART OF BEING LOCAL
IN SPAIN
Company formation in Spain
Starting a business in Spain can be an exciting journey that requires careful planning and execution. The country on the Iberian Peninsula offers a dynamic economy, a rich culture and a strategic location that makes it an attractive location for business of all kinds.
With the right, strategic local partners, you can successfully set up a business in Spain and expand sustainably. This includes the InterGest Spain team, which provides professional support to foreign companies in planning and realising a business base in Spain.
Carlos Frühbeck is Managing Director of InterGest Spain since 2008. After studying economics in Spain, he became Spanish chartered accountant (Auditor de Cuentas). Working for over 25 years as taxadviser and director for foreign companies in Spain, he has gained great experience to support international investors successfully on their way to their pole position in Spain and European markets.
WHY SHOULD
COMPANIES
INVEST IN
Spain?
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What are the advantages of setting up a company in Spain?
1. Strategic location
Spain is located at the crossroads of Europe and Africa and is an important hub for trade and business relations. The geographical location offers companies access to Southern European and North African markets.
2. Dynamic economy
Spain has a diverse economy. Industries such as tourism, technology, renewable energies and real estate offer future-oriented business opportunities.
3. Cultural diversity
Spain's cultural diversity and openness can facilitate the development of international business relationships.
4. Subsidies and incentives
The Spanish government offers various subsidies and incentives for companies, especially in areas such as research and development, renewable energy and innovation.
5. Quality of life
Spain is known for its high quality of life. Attractive cities, a pleasant climate and a relaxed lifestyle can help attract talented professionals and promote employee well-being.
6. Infrastructure
The infrastructure in Spain is well developed, which facilitates the transportation of goods and business communication. There are modern airports, motorways and ports that support the logistical needs of businesses.
7. Costs
The cost of living and doing business in Spain is low compared to other Western European countries. This can be particularly advantageous for start-ups and small businesses.
8. Networking opportunities
In Spain, there is a great emphasis on personal relationships and networking. The opportunity to build relationships in such an environment can be crucial to business success.
The benefits can vary depending on the industry, location and business model. It is recommended to conduct thorough market research and seek professional advice to identify and take advantage of the specific benefits for businesses.
To do this, contact InterGest Spain. The company has many years of experience in setting up, advising and managing foreign companies and businesses in Spain.
Preparations for setting up a company in Spain
1. Market research
Before setting up a business or a subsidiary in Spain, it is crucial to understand the market in Spain. Market research should be carried out to find out the demand for products or services, identify potential competitors and explore legal requirements.
2. Choose the legal form
There are several legal forms in Spain, including the Sociedad Anónima (SA) and the Sociedad de Responsabilidad Limitada (SRL). Choosing the right legal form depends on several factors, including the size of the company and the liability structure.
3. Bureaucratic steps
Bureaucracy in Spain can be complex. It is therefore advisable to hire a specialised consultancy firm to ensure that all the necessary documents are completed and submitted correctly.
4. Taxes and finances
The Spanish tax system must be checked and the business properly registered. This includes applying for a tax number and setting up accounts to ensure financial transparency.
5. Labour law regulations
Labour law in Spain must be understood and professionally implemented in the company, including employment contracts, working hours and social security obligations.
6. Build a network
A local network is crucial for building relationships with potential clients, suppliers and other businesses. Networking is particularly important in Spain. Personal relationships often play a crucial role in business.
7. Language and culture
The Spanish language and culture play a crucial role in business activities. A good knowledge of the language and culture can greatly enhance business success.
InterGest Spain brings with it the requirements of a local administrative partner. For example, InterGest Spain works in partnership with one of the leading tax consultancy and auditing firms, Ficesa Treuhand S.A., whose know-how and local network contribute to the perfect support of InterGest clients.
What forms of company are there in Spain?
The most common company forms in Spain are:
- The Sociedad Anónima is the Spanish public limited company. It requires a minimum capital and is ideal for larger companies. The capital requirement is higher than for other types of companies. The company is required to have annual audits.
- The Sociedad de Responsabilidad Limitada is the Spanish limited liability company (GmbH). It is popular with smaller companies as the minimum capital is lower than for the SA. Liability is limited to the company's assets.
- The Sociedad Limitada Nueva Empresa is a special form of limited liability company designed for small businesses. It facilitates the incorporation process and offers tax advantages.
- The Sociedad Anónima Europea is the European public limited company. It enables companies to operate across borders and in different EU countries.
- The Sociedad Colectiva is a form of company in which the partners have personal and unlimited liability. This form is less frequently used than the SA or the SRL.
- The Sociedad Comanditaria is a limited partnership in which there are two types of partners: the personally liable (comanditarios) and the limitedly liable (comanditados).
The choice of partnership form depends on various factors, including the size of the business, the liability structure, the minimum capital and the specific business requirements. InterGest Spain, based on excellent contacts and many years of experience, will assist you in providing legal advice and in choosing the most suitable company form for your business in Spain.
Accounting in Spain
Accounting in Spain is subject to certain rules and regulations that must be observed. These include:
1. Plan General de Contabilidad (PGC)
Accounting in Spain must be carried out in accordance with the Plan General de Contabilidad. This is the general accounting system that establishes the principles and rules for accounting in Spain.
2. Obligation to keep accounts
Companies in Spain are required by law to keep proper accounting records. This includes the recording of all financial transactions, income and expenditure.
3. Annual accounts
Every company in Spain must prepare annual accounts each year. These must contain certain elements, including the balance sheet and the profit and loss account.
4. Taxes
Accounting is closely linked to tax obligations. Companies must record, report and pay VAT (IVA) and other taxes in accordance with Spanish tax regulations.
5. Accounts payable and receivable
It is important to keep an accurate record of creditors (payables) and debtors (receivables). This enables the relevant authorities to verify the financial situation of the enterprise.
6. Electronic accounting
In Spain, electronic bookkeeping is strongly encouraged. Companies are often required to file their accounts electronically with the tax authorities. This requires the use of digital signatures and special software.
7. Professional advice
It is advisable to consult a professional accountant or tax advisor to ensure that the accounts comply with the legal requirements. An expert can also help to take advantage of possible tax benefits.
InterGest Spain has the expertise to enable accounting compliance to avoid legal problems and provide an accurate picture of financial performance. If you need accounting services for your company or branch in Spain that comply with the legal requirements in Spain, InterGest Spain is the right choice.
Let InterGest Spain advise you on setting up a business without obligation
InterGest Spain offers you the complete range of services to set up your company and branch in Spain. This includes payroll, business process outsourcing, accounting, tax and legal advice, the daily execution of fiduciary administrative work, reporting and controlling. Carlos Frühbeck has headed Intergest Spain since 2008. The graduate economist and Spanish chartered accountant (Auditor de Cuentas) and his team will advise you individually and without obligation in an initial meeting.
