Investors who want to open a recruitment company in Spain need to know the basic company incorporation requirements, the profile of the average job seeker in Spain as well as the workforce trends. A recruitment agency will work for the client (the company looking for personnel). At the same time, it must mind the qualifications and profile of the individual applying for an open position.
A recruitment company in Spain can provide services for a wide range of industries at all position levels or work in just a few business fields. Our lawyers in Spain can assist you, if you want to open a recruitment company in Spain.
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How to set up a recruitment company in Spain
Regardless of the chosen business field, the business start-up costs in Spain will depend on various factors. One suitable option for setting up a recruitment company in Spain would be the limited liability company (Sociedad de Responsabilidad Limitada). Only 1 shareholder is required and there is no minimum share capital prescribed. The general company incorporation procedure for the limited liability company is as follows:
- If you are a foreigner, apply for the Foreign Identity Number (NIE);
- Choose a unique business name;
- Register your business address in Spain. Our Madrid lawyers can provide an address for you in Spain’s capital;
- Draft the statutory company documents and prepare the other mandatory paperwork, such as your ID documents;
- Open a corporate bank account;
- Register with the Spanish Commercial Registry;
- Register for the company tax number with the Spanish Tax Agency.
Your company will need to observe the taxation principles and also be registered for VAT purposes. Our attorneys in Spain can help you with taxation compliance services.
Other post-incorporation steps for completely opening a recruitment company in Spain include registering with the Social Security Institute if you plan to hire employees.
The Spanish recruitment company: a short description
A recruitment company has the task of matching an available job position with the right candidate. Successful companies are those that can manage to obtain a high percentage of satisfaction after a good match, both from the employer and the employee.
The Spanish workforce is talented, multilingual and there are many young potential employees. The recruitment company will mainly provide services that consist of permanent staff recruitment, but certain types of companies that operate in this field can also provide payroll services or human resources consultancy services.
Recruitment companies will also need to be well informed about the employment legislation in Spain and the requirements for companies that want to hire foreign personnel. Our law firm in Spain is prepared to work with foreign companies and can help you establish a solid legal base for your employee recruitment services.
Working hours and overtime regulations in Spain
If you set up a recruitment company in Spain, you must be well-informed about the mandatory work hours regulations. Your company needs to provide accurate information to clients about their obligations regarding employee rights and benefits. Our Spanish attorneys will briefly explain the working hours and overtime regulations.
According to Article 34.1 of the Workers’ Statute, the standard workweek in Spain is 40 hours. Daily working hours should not exceed an average of 9 hours. The distribution of working hours must be outlined in employment contracts or collective bargaining agreements. This is an important aspect if you open a recruitment company in Spain and offer contract drafting services.
Overtime work in Spain is defined as any hours worked beyond the standard working hours. There is a maximum annual limit of 80 overtime hours. Overtime is voluntary and cannot be required except in exceptional emergency cases.
Employers have two options for compensating overtime:
- They can pay for the overtime at least 75% above the regular hourly rate;
- They can provide equivalent paid time off.
Our lawyers in Barcelona can help workers who have not been compensated for their overtime work.
Employers are also required to maintain detailed records of all working hours, including overtime, under the Working Hours Registration Law (Ley 8/2019).
Statistics about the Spanish labor market
Our lawyers in Spain have prepared some statistics about the Spanish labor market from 2023:
- In the fourth quarter of 2023, Spain’s unemployment rate decreased to 11.76%;
- Throughout 2023, 783,000 new jobs were created in Spain;
- Employment for women increased by 45,000 jobs;
- The number of jobs held by foreign workers in Spain increased by 25,000.
Aside from our company formation services, our team of real estate lawyers in Spain can also help investors buy a property in the country.
If you want to register your company, you can contact our law firm in Spain.