F.A.Q on Spanish Self Companies

Who can incorporate a Spanish SL Company?

Anyone, regardless of his nationality or residency, provided that he is of minimum legal age and that he has not been prohibited in the past from running a business by the Spanish authorities, can acquire a Spanish SL (There will be no problem opening a Spanish bank account, even if you have been refused openings by banks in other countries). Our Spanish SL´s are created specifically for businessmen and financial professionals worldwide, such as lawyers and accountants who don't want to waste their precious time waiting for the completion of long and expensive incorporation procedures and who need someone who speaks the same language.

How long does it take to purchase a Spanish SL Company?

After we have all your (correct!) information and supporting documents, the time it takes to incorporate your company is only dependant on the availability of our notaries for an apointment. We will set up a meeting between you and our Notary who will witness your signature on documents relating to the transfer of the company shares and the change of administrator (director). We have an established network of notaries in all of the larger cities in Spain. Typically, we can arrange a meeting within 24 hours of your application - or even less in certain circumstances.

How can you guarantee that the company did not have any former activity and does not have debt?

When you buy an existing company, the risk of former activity and debt always exists. However, you don't run this risk with us because all the companies that we sell were recorded and incorporated by us. To make sure you have no concerns over prior debt, we certify in front of the notary the non-debt and non-former activity of the company. This certification will be publicly registered with the Spanish Registrar of Companies.

Which notaries do we use?

We have an established network of notaries in all of the larger spanish cities. This enables us to be extremely efficient and to be able to offer this exceptional service. In rare cases, the customer can choose his own notary, however, a supplement of 350€ will be asked for the expenses to transfer the file.

Do I need to travel to complete the transfer?

Yes, all of the involved parties MUST be present. In some exceptionnal cases, we can arrange for a signature at a consulate, or to have part of the shareholders sign at a different date from the others.

How much confidentiality is the customer ensured?

Our organization guarantees absolute confidentiality because of the way our transactions are recorded. All measures to protect confidentiality and secrecy are taken in order to protect our clients documents and transactions. Furthermore, we do not register the new share ownership with the Spanish Commercial Register (with companies that have more than one shareholder). This provides the client with increased privacy and asset protection as he will not appear as the owner of the shares on the public register, yet will be protected by the notary's official copy.

Is it possible to modify the by-laws of the company?

Yes, any modification of the by laws can be carried out very quickly and at no cost. Such modifications can be sent to us in a language of your choice (French, English, Potuguese, Italian or Spanish), and we will translate and put it in the format required by Spanish law and our notary.

Does the mandatory share capital of 3006€ need to be paid-up?

No, we have already invested the mandatory initial share capital. Once you've bought the company, we withdraw the money from the bank account. You are expected to have this capital somewhere in your petty cash box.

Who is in charge of recording the change of directors at the Spanish Commercial Register? (Registrar of Companies)

Our team members will record all of the initial transactions. The following fees are included in our package: all notary expenses, further fees for the registration of (you) the new director, incorporation fees and publication fees paid to the Commercial Registrar. You don't have to pay anything on top of the purchase price. All legal fees are included.

Can the corporation's name be changed after registration?

Yes you can change your company name, however, it is advisable and quicker to do this after the transfer of the company has been completed. This service requires obtaining a certificate for the new name at the Central Commercial Register in Madrid and may take several days (between 8 and 15). The cost for this service, with legal, notary and publication fees is 350€.

When will the company be operational?

The company is already fully operational. Immediately after your meeting with the notary, we will put your name as the new "administrator" on the bank account and you may start billing clients.

What are the general charges to take into consideration for an S.L Company?

Accountancy, Social Security Charges & Payroll, corporation tax are expenses to be taken into account.

How much are the social security rates on wages in Spain?

Approximately: 30.6% employer + 6.35% employee (For the Administrator: the maximum is capped at between 200€ and 230€ monthly, regardless of the wage level )

Unemployment

In Spain Obligatory Social contributions 01/01/2004	Employer rate	Employee rate	Total
Social Security	23,60%	4,70%	28,30%
6%	1,55%	7,55%
Funds towards salary guarantee	0,40%	-	0,40%
Professional Training	0,60%	0,10%	0,70%
Total	30,60%	6,35%	36,95%

 

Is there income tax on Spanish companies?

The rate of Corporation Tax is between 30% and 35% depending of the profits and size of the company. In general, if your have under 120,000€ in profits , you will be in the 30% range. Above that profit level, you will be at 35%. Note that the government has promissed a 5% rate decrease on both rates for 2006.

Please note some cost guidelines

1. Non-Residents: Each non-resident director or shareholder will have to pay 100€ to register mandatory statistical data with the authorities.
2. Companies with only one shareholder will pay an extra 100€ for a "Unipersonality" notification
3. Transferring a company from one area to another costs 400€ at purchase. (notary expenses, transfer and Commercial Register costs)
4. Companies with more than one Director will have to pay 125€ to add an additional Director.