If you want to invest in Spain and create your company you will have to deal with bureaucracy. There are a few steps to go through until you are good to go with your business.
We will describe three tips that you will have to deal with at the time of incorporating a company in Spain.
1. Hold a NIE
The first thing to know about setting up a company in Spain is that every foreign shareholder or director, whether a person or a company, must have a foreign ID number, or NIE.
If you are a person this number will be issued by the Ministry of Internal Affairs or Ministerio del Interior through the National Police, and if you are a company this number will not be a NIE but a NIF, a tax number and will be issued by the Ministry of Economy through the Tax Office or AEAT.
In any case, it is mandatory to hold this number in order to be a shareholder of a company in Spain or to be appointed as director.
2. Public Documents
Another challenge to carry out at the time of investing in Spain is the Public Documents.
In Spain, the process of incorporation of a company must be carried out in a notary and at least the Incorporation Deed must be prepared and executed by and in front of a notary.
Other documents such as the Articles of Association or the Shareholder Agreements, for example, may be prepared internally but at some point the incorporation process must be done physically in a notary and the incorporation deed must be registered in the Commercial Register.
3. Signing in Spain
Here another issue, do I need to be physically in Spain in order to set up my company?The answer is yes, the shareholders that incorporate a company must be in the notary at the time of the incorporation in order to sign the Incorporation Deed but, if the shareholder grants a special Power of Attorney in favor of another person (for example his lawyer) with the appropriate faculties then that person may execute the incorporation deed on his behalf. That way the issue of being in Spain in person at the time of the incorporation would be avoided.
So we have talked about three issues that may arise at the time of incorporating a company in Spain by a foreign investor which are (i) the necessity of having a NIE or NIF, (ii) the public documents that must be registered in the commercial register and (iii) the necessity of being present at the notary at the time of executing the Incorporation Deed.
If you still feel that we can be of more help to you for the incorporation of your business in Spain do not hesitate to reach us out for more information and we in SCI will be more than happy to assist you within the whole process.
Thank you so much for reading.