Spain SL (Sociedad Limitada) companies require minimum €3,000 capital and unique name approval before notarization. 18% of applications delayed due to similar existing names in same province.
SL vs SA
SL (Sociedad Limitada) requires €3,000 capital, maximum 5 shareholders initially. SA (Sociedad Anónima) requires €60,000 capital, unlimited shareholders, public trading allowed.
Choose SL for small business or startup with limited ownership. Choose SA only if planning stock market listing or large shareholder base.
Name Availability
Check Registro Mercantil Central before applying. Name must be unique nationwide, not just in your province.
Use Certificado de Denominación Social (name certificate) obtained from Registro Mercantil Central. Valid for 6 months. Costs €13.52.
Similar name rejections common: Spanish law rejects names "confusingly similar" even if not identical. Check phonetic similarity, not just exact spelling.
Forbidden Words
Cannot use: "España", "Nacional", "Real" without authorization. Financial terms ("Banco", "Seguros") require license from Banco de España.
Professional services ("Abogados", "Arquitectos") restricted to qualified professionals only. Religious terms require permission.
Mandatory Suffix
Name must end with "SL", "S.L.", or "Sociedad Limitada". Cannot omit or use creative variations.
Example: "TechMadrid SL" valid. "TechMadrid Limited" or "TechMadrid Ltd" rejected.
Formation Process
Obtain NIE (foreign tax ID): 2-4 weeks for non-residents, required before any step. Reserve company name: €13.52, 1-3 business days via Registro Mercantil Central.
Open bank account and deposit €3,000 capital: 1-2 weeks, receive certificate of deposit. Draft company statutes (estatutos): 1-2 weeks with lawyer, €800-1,500.
Notarize deed of incorporation (escritura): €300-600, requires all shareholders present or power of attorney. Register with Registro Mercantil: 15-20 business days, €240 fee.
Obtain CIF (company tax ID): 5-7 days after Registro Mercantil registration. Register for IVA (VAT): Automatic with CIF, activate within 30 days.
Costs Breakdown
NIE application: €10 (non-residents add €50 consular fee). Name certificate: €13.52. Notary fees: €300-600. Registro Mercantil: €240.
Lawyer (statutes drafting): €800-1,500. Accountant (first year): €1,200-2,400. Gestor (administrative agent): €600-1,200/year.
Social security registration: €0 but mandatory €294/month minimum contribution once active. IVA registration: €0.
Total minimum: €6,000-9,000 including €3,000 capital. Budget €10,000-15,000 with full professional support.
OEPM Trademark
Register trademark with Oficina Española de Patentes y Marcas (OEPM) before company formation. Costs €125.26 for 1 class online, €150.25 paper filing.
Processing time: 6-8 months including 2-month opposition period. File via OEPM website.
Madrid Protocol
Spain participates in Madrid System for international trademark registration. File Spanish trademark first, then extend to 130+ countries for €653 base fee.
Strategic for startups planning European expansion - one Spanish filing becomes EU-wide protection for fraction of cost.
Spanish trademark costs 75% less than direct EUIPO filing but provides same EU protection through Madrid Protocol extension.
NIE Requirement
All foreign shareholders need NIE (Número de Identidad de Extranjero) before incorporation. Cannot skip this step.
EU nationals: Apply in Spain at police station or Spanish consulate abroad, 2-4 weeks. Non-EU nationals: Must justify economic interest (company formation qualifies), 4-8 weeks.
NIE Application
Required documents: Valid passport, company formation justification letter, EX-15 form, appointment confirmation. Appointment booking: 2-6 weeks wait depending on city (Madrid/Barcelona longer).
Processing: 2-4 weeks after appointment. Can use power of attorney to authorize gestor to collect NIE on your behalf.
NIE trap: Many founders don't realize NIE needed BEFORE bank account. Timeline: Get NIE first (4-8 weeks) → Open bank account (1-2 weeks) → Then start incorporation process.
Administrator Role
SL requires at least 1 administrator (administrador). Can be sole administrator, joint administrators (2+), or board of directors (consejo).
No Spanish residency required for administrator. But must have NIE if foreign national. Can be shareholder or external appointment.
Foreign Administrators
Non-EU administrators need NIE and may need visa for Spain visits. Social security contribution mandatory if physically working from Spain.
Nominee administrator services available: €1,500-3,000/year, administrator assumes legal liability.
Common Mistakes
Starting without NIE: Can't open bank account or sign notary deed - wastes 6-8 weeks. Not checking name similarity phonetically: Rejection even if spelling different.
Forgetting Registro Mercantil publication: Company legally invalid until published. Not activating IVA within 30 days: €150 penalty minimum.
Using all €3,000 capital as deposit: Need operating cash immediately after incorporation. Not budgeting monthly €294 social security: Mandatory even with zero revenue.
Post-Formation
Social security registration: Within 30 days of first employee or self-employed administrator. Monthly minimum: €294 as autónomo (self-employed).
Annual accounts: File with Registro Mercantil within 7 months of fiscal year end, €27 fee. Audit required if 2 of 3: €2.85M balance, €5.7M revenue, 50 employees.
Corporate tax: 25% on taxable profit (15% first 2 years for new companies). IVA returns: Quarterly or monthly depending on turnover.
Trademark Lens verifies business name availability before €6,000-15,000 Spanish SL formation and legal costs.