Starting a business or taking your entrepreneurial journey to the next level? The question that often looms is: Should I establish a limited company? The answer varies based on your goals and circumstances, but if you’ve decided to take the plunge, let’s explore how you can make it happen with ease.
Negative name certificate
Begin by obtaining a Negative Name Certificate from the business register. This ensures your company name is distinct, not already in use, and not too generic. Apply for 5 different names, and you’ll receive confirmation for one of them. This certificate is valid for 6 months.
Bank account
The second crucial step involves establishing a dedicated business bank account. To initiate this, you’re required to deposit €3,000 into this account and obtain an official certificate from the bank. These funds are temporarily held in a frozen state until you complete the notary proceedings and finalize all formalities.
While there’s recently been an option to establish companies for a mere €1, it’s essential to recognize the potential limitations of this approach. In my perspective, opting for this €1 setup may prove impractical, as any thriving business typically requires sufficient initial capital. Resorting to this €1 setup could necessitate obtaining a loan to fund your operations adequately. Instead, a wiser strategy is to place the €3,000 directly into the company’s capital.
Additionally, you can explore an alternative route. If preferred, you may choose to bypass this step altogether by indicating in the company’s legal documents that shareholders will commit to covering this amount if it becomes necessary.
Company Statutes
To set the wheels in motion, we must compile essential company details, including shares, shareholders, the nature of your business, address, and other pertinent information. For a swift and hassle-free process, we highly recommend utilizing CIRCE, a cutting-edge online platform thoughtfully provided by Spain to empower entrepreneurs. Opting for the traditional route can be time-consuming, spanning anywhere from 3 to 6 weeks.
The beauty of CIRCE lies in its remarkable efficiency. With this digital solution, you can expedite the entire process, reducing it to a mere 48 hours post-notary signing. How? CIRCE streamlines various forms required by multiple administrative bodies, such as the Tax Agency, Social Security, and the business registry, into a seamless experience. As an added perk, you’ll enjoy cost savings, especially if your initial capital falls below €3,000. The notary fees are a reasonable €60 plus IVA, and the business register fee is just €40 plus VAT.
It’s crucial to bear in mind that if you assume the role of administrator for your limited company, you must be self-employed. This eligibility is reserved for Spanish tax residents. If you happen to be a non-resident, an alternative is designating an employee or another qualified individual to fulfill this obligation on your behalf.
Notary signing
This marks the final step in preparing for your venture. Schedule an appointment with the nearest notary office. Here, the essential company documents will be formally signed. Fortunately, as of 15th October, 2023, notaries have embraced modernity, allowing you to sign these documents remotely via video call, greatly simplifying this vital procedure.
Once the documents are signed, you’ll need to retrieve or request the digital version within 24 to 48 hours. At this point, your company will be assigned its own CIF number.
Congratulations! Your limited company is now established, and you’re ready to commence trading. If you require guidance throughout this process or still have lingering questions about your specific case, or if you’re in need of an accountant for your new SL, fret not! We’re here to provide comprehensive assistance, ensuring you can focus on what truly matters – your business.
