The limited liability company (LLC) is the most popular type of legal entity businessmen prefer to incorporate in Spain. Our team of lawyers in Spain can offer legal advice on the incorporation requirements and the legal steps which have to be followed by both local and foreign businessmen. You can rely on us if you want to establish a limited liability company in Spain.
| Quick Facts | |
|---|---|
| Types of LLCs | The limited liability company (LLC) and the simplified limited liability company |
|
Most suitable for |
Opening a small or medium-sized company (This business form is suited for most of the commercial activities available in Spain.) |
|
Minimum number of shareholders |
1 |
| Maximum number of shareholders (if applicable) | 5 for the simplified limited liability company; for the standard LLC, there aren’t any limitations concerning this matter. |
| Laws regulating the procedure of opening an LLC in Spain |
Companies Act 2006, Law 18/2022, Law 2/1995 |
| Institution in charge with the registration of the Spanish LLC |
The Commercial Registry |
| Director requirements |
Minimum 1 director (There aren’t any residency or nationality requirements.) |
| Taxes for companies |
Corporate tax (25%), VAT (21% – standard, 10% and 4% – reduced rates), employment taxes (6.45% – employees, 30.4% – employers), withholding taxes on royalties, interest, dividends (19% – standard rate) |
| Minimum requirements to set up an LLC in Spain |
Investors must assign a trading name for the company, sign the statutory documents, have a registered address in Spain, open a corporate bank account and obtain various business permits and licenses, in accordance with the object of activity. |
| Apply for a business number (yes/no) | Yes |
| Foreign ownership rules |
The Spanish law offers the right of owning a business in Spain as a foreigner. |
| Who can register an LLC |
Individuals and corporate entities (residents and non-residents alike) |
| Statutory documents of an LLC |
The by-laws and the deed of incorporation |
| Documents to prepare for the incorporation |
Shareholders’ identity documents, the paid up capital certificate, the Commercial Registry Certificate, the tax identification number issued for the director, the power of attorney (if the registration is done through a third party, such as our team) |
| Audit requirements (yes/no) | Yes (if certain thresholds are met). |
Table of Contents
What are the some of the mandatory registration steps?
Below, our team of lawyers in Spain presents some of the main steps you should take into account when registering a limited liability company:
- in order to open an LLC in Spain, investors must first find a suitable trading name for the company, which has to be unique at a national level;
- after the name is secured, investors can proceed to draft and sign the company’s statutory documents, which are then notarized at a public notary;
- it is also mandatory to have a tax identification number;
- investors must set up a corporate bank account (at any commercial bank);
- register all the documentation with the Commercial Registry.
Below, you can read our infographic on the Spanish LLC:
What are the capital requirements for the LLC in 2026?
Following the enactment of the Law 18/2022, known as the Crea y Crece (Create and Grow) Law, the capital requirements for a limited liability company were lowered from EUR 3,000 to EUR 1. Therefore, investors can set up this company type with only EUR 1 during the initial incorporation stages, but there are certain matters to be aware of, which can be explained by our lawyers in Spain.
How many founders are necessary for the Spanish LLC?
The Spanish LLC can be registered by minimum one shareholder, who can be represented by a natural person or a legal entity.
What is the SNLE?
If you are planning to invest in Spain in 2026, you must know that you can opt to register a simplified version of the limited liability company – the new enterprise limited company in Spain (SLNE). This company type can only be incorporated by shareholders who are natural persons and the shareholding structure can comprise maximum 5 investors.
What are the main features of the SNLE?
Investors who opt to open an LLC in Spain as a SLNE should also know the following:
- it allows 100% foreign ownership;
- it benefits from a simple registration process, which can be completed in 1 business day;
- the approval on the registration of the SLNE can be granted in 2 days since the submission of documents;
- minimum 1 shareholder is necessary for the setup of an LLC in Spain as a SLNE (the shareholder can also be the manager of the company).
What is the statutory document of an LLC?
The LLC gains legal recognition after its bylaws are signed. These are the articles of incorporation, which must be drafted with the help of lawyers specialized in the commercial law (such as our team). After the documentation is drafted, in order to gain legal recognition, they are signed in front of a public notary and then submitted to the Spanish registration authorities.
Do I need to apply for a tax registration number as a foreign investor?
Yes, if you plan to set up an LLC in Spain, you are legally required to apply for a tax registration number, provided that you are a non-resident legal entity or a non-resident natural person.
Can I hire foreign employees?
Yes, if you open an LLC in Spain, you have the right to hire foreign workforce, but for this, you need to follow the immigration rules in this country. More details on employment matters are available here.
Do I need to be present in Spain during the registration formalities?
No, you do not have to go in person in order to participate in the registration formalities, as long as you grant the power of attorney to a trusted party, such as our team of lawyers in Spain.
What is the corporate tax regime in Spain in 2026?
LLCs in Spain are liable to the payment of the corporate income tax, given that they carry out commercial activities. In the list below, you can observe a few basic matters concerning this tax:
- in 2026, the standard corporate tax rate is 25%;
- lower tax rates are applied for companies that fall under the micro-enterprise regime, in which they must have a taxable annual income below EUR 50,000 so that they can benefit from a corporate tax of 19%;
- a tax of 21% is applied for any yearly income above EUR 50,000;
- small companies that have a taxable income ranging from EUR 1 million to EUR 10 million per year are taxed in 2026 with a corporate income tax of 23% and further reductions are expected in the following years (down to 20%).
What are current company formation fees charged to investors?
If you want to establish a limited liability company in Spain and you will obtain legal representation from our team, you will be charged with specific fees. In 2026, our team applies the following fees for the services listed below:
- approximately EUR 425 – standard company formation procedure;
- approximately EUR 600 – expedite company registration services;
- minimum EUR 25 per month – for virtual office services, through which companies can obtain a registered address in Spain (this is a mandatory part of the incorporation process);
- EUR 3,900 – legal fees;
- EUR 150/month – accounting services for small companies.
What are the main rules of law applicable to the LLC in Spain?
The Spanish LLC falls under the regulations of the Law 2/1995 Sociedades de Responsabilidad Limitada. Under the regulations of the Law 14/2013 – The Entrepreneur Law, the incorporation of an LLC in Spain was simplified, offering a more rapid regime for the registration of this type of entity. The law for the simplified LLC was enforced in 2003.
Businessmen are invited to contact our law firm in Spain for more details on the registration of a Spanish limited liability company.