In Spain, the process of setting up a company from scratch can take varying lengths of time depending on the type of company, the location and the formalities involved. There are many factors involved in this regard, as there are various stages to be completed.
Factors that influence the time it takes to set up a company
Type of company
Depending on the type of company you wish to incorporate, the timescales will change. For example, a Sociedad Anónima (SA) or a Sociedad Limitada (SL) have a greater number of formalities and formalities than a freelance or self-employed person.
Geographical location
Depending on the autonomous community where the company is registered, the deadlines will be shorter or shorter. Thus, large cities tend to have quicker processes than rural areas, as they have more infrastructure.
Type of business activity
If the company is involved in activities with specific licenses or authorisations, such as health or foreign trade, the incorporation time will vary.
Legal formalities and requirements
There are specific requirements depending on the activity or type of company being set up. Logically, the longer it takes to set up a company, the more requirements it has to fulfil.
Steps to set up a company in Spain
The current regulations establish a series of steps to follow when setting up a company. They are:
Obtaining the company name
Once the company name has been chosen, it is necessary to check if it has not been used before in the Central Mercantile Register, which will take between 1 and 3 days.
Drafting the articles of association
These concern the internal rules of the company, i.e. its structure and general functioning. If the procedure is carried out independently, the time may vary depending on the complexity of the articles of association. If, on the other hand, a notary is engaged, this step can be completed within one day.
Entry in the commercial register
All companies are obliged to be entered in the commercial register. In this case, it takes between 2 and 10 days.
Obtaining the NIF (Tax Identification Number)
The newly registered company must apply for the NIF at the Tax Agency, which usually takes between 1 and 5 days.
Opening a bank account and minimum capital
Once the above steps have been completed, a bank account must be opened to deposit the minimum share capital.
Registration in the Census of Entrepreneurs
Now that the company has been set up, it is time to register it in the Tax Agency’s Census of Entrepreneurs. This is an obligatory procedure that must be completed in one day.
Average times for each phase of the incorporation process
Preparation of documentation
If no prior authorisation is required, the preparation of documents related to the articles of association, notarial deed and other forms takes 2 to 5 days.
Administrative response times
It will depend on the workload of each of the institutions involved in the process, but the administrative deadlines for obtaining the registrations and the NIF vary between 3 and 10 days.
Estimated time for final registration
This will be within 2 to 10 days, subject to the complexity of the company and where it is located.
Options to speed up the time to set up a company
Express incorporation companies or SL Express
These are those dedicated to setting up limited companies in just 24 hours through a standardised process and a fixed fee.
Using an online agency or consultancy
Another option would be to leave the whole process in the hands of specialised agencies in order to speed up each procedure considerably. In this way, it is possible to avoid mistakes and delays that are longer than desired.
Hiring the services of a specialised incorporation company
There are companies that offer company formation packages, including advice, handling of applications and registrations and drafting of documents, which speed up the process considerably.
Comparison of incorporation times by company type
Limited Company (SL)
Requires an average time of between 10 and 15 days, depending on the speed with which the relevant documents and registrations are handled.
Public Limited Company (SA)
In this case the process can be somewhat slower, between 15 and 30 days. This is due to the fact that the formation of an SA implies additional requirements and particular formalities, unlike other types of companies.
Self-employed and freelancers
It should not take more than one day, as it is a process that does not involve as many formalities as companies.
Other legal forms
We refer here to the cases of cooperatives or worker-owned companies, which have fluctuating formation times depending on the activity they carry out.
Special cases and additional considerations
Foreign companies in Spain
Companies that have already been incorporated and choose to set up a branch in Spain will have to meet requirements such as the translation of documents or compliance with local regulations, which can lead to longer deadlines.
Sector-specific formalities
For activities such as food, healthcare or the financial sector, specific permits and licences are required. The incorporation process in these cases can be expected to be more extensive.
Tax criteria to consider
Depending on the tax structure imposed by the company, the formalities to be carried out may vary. In order to ensure that the time taken does not take longer than expected, it is advisable to seek specific advice on the matter.
Conclusions
The deadlines for setting up a company in Spain vary depending on the wide variety of factors involved. They will be more or less extensive depending on the requirements to be met, the type of company being set up, its location and the activity it engages in.
It is important to bear in mind that there are ways of speeding up the processes, such as consultancies or specific companies. However, it is always recommended to carry out the task through professional advice to ensure a successful incorporation.
