If you’re considering starting a business in Ibiza, setting up a company is a fundamental step to get your venture off the ground. Establishing a company in Spain involves several procedures and legal requirements. Here’s a guide on the steps you need to follow to establish a company to operate in Spain:
- Choose the Type of Company: The first step is to decide on the type of company you want to establish. In Spain, the most common types of companies are the Sociedad de Responsabilidad Limitada (Limited Liability Company – S.L.) and the Sociedad Anónima (Public Limited Company – S.A.). Each type has its own requirements and implications, so it’s important to choose the one that best suits your business needs.
- Name Your Company: Choose a unique name for your company that complies with Spanish naming regulations. You can check the availability of your chosen name with the Central Commercial Registry (Registro Mercantil Central).
- Draft the Articles of Association: The Articles of Association (Estatutos Sociales) are the legal documents that outline the rules governing the operation of your company. They should include details such as the company name, registered address, purpose, share capital, and management structure.
- Open a Bank Account: To deposit the initial capital of your company, you’ll need to open a bank account in Spain. The minimum share capital required varies depending on the type of company you choose to establish.
- Notarial Deed: You must formalize the incorporation of your company before a notary public in Spain. The notarial deed (Escritura Pública de Constitución) includes the Articles of Association and the agreement of the shareholders.
- Obtain a Tax Identification Number (NIF): Your company will need a Tax Identification Number (Número de Identificación Fiscal – NIF) to carry out its activities in Spain. You can obtain this number from the Tax Agency (Agencia Tributaria).
- Register with the Mercantile Registry: After obtaining the NIF, you must register your company with the Mercantile Registry (Registro Mercantil) in the province where your company will have its registered address. This registration grants your company legal status and makes it publicly visible.
- Register with the Social Security System: If you plan to hire employees, you’ll need to register your company with the Spanish Social Security System (Seguridad Social). This registration will allow you to fulfill your obligations as an employer, such as paying social security contributions.
- Comply with Tax Obligations: Your company must comply with various tax obligations in Spain, including corporate income tax, VAT (Value Added Tax), and annual tax returns.
- Obtain Business Licenses and Permits: Depending on the nature of your business activities, you may need to obtain specific licenses or permits from local authorities or government agencies.
By following these steps and seeking professional advice when needed, you can successfully establish a company to operate in Ibiza and embark on your entrepreneurial journey in this vibrant and dynamic island. Should you have any further questions or require additional assistance, please do not hesitate to contact us. Our team of advisors is here to help you navigate the process and provide any additional information you may need. We look forward to hearing from you and assisting you with your endeavors.
