In Spanish Law the most common companies are the following. Please note that these might differ from similar companies from other countries:

- Joint Stock Company (S.A).
- Company Limited by Stakes (S.L.)
- Sole Member Company Limited by Stakes (S.L.)
- General Partnership (S.R.C.)
- Labour Joint Stock Company (S.A.L.)
- Company Limited by Stakes of “New Creation” (SRLNC)
- Cooperative Companies (S.C.)
- Associations
- Foundations

Amongst these companies, the SLs are the most commonly used, being followed by the SAs, this is because the greatest part of existing companies are created for small businesses, their minimum share capital is of 3,006.00 €.

Regarding company incorporation, we want to point out that their system of creation is not by Court proceeding but private and administrative, this allows the company to function in a short space of time. The steps to incorporate a company are the following:

- Obtaining a certificate from the Mercantile Register that states that the company name has not been registered before.
- Depositing the share capital in a bank.
- Execution of the deed of incorporation by a public notary.
- Obtaining the NIF (Spanish certification of the number of tax identification) and inclusion in the Spanish Tax Agency.
- Paying the ITP tax (Spanish Tax of Patrimonial Transfer).
- Registering the company in the Provincial Mercantile Register.

The deed of incorporation must always be alongside the articles of association which contain all the information related to the form and characteristics of the company, like its board of directors and other posts.

From time to time, since the company is constituted, some taxes must be declared in the Tax Agency to accomplish the Company’s obligations. The most important ones are the IVA (Spanish VAT) (every three months) and the IRPF (Individual Tax) (every three months, as well). Every year these taxes must be paid together with the Companies Tax.

In order to fulfil all the formalities and obligations required, we recommend you to entrust us the legal assistance to accomplish correctly all these obligations. You can consult us at any time, free of charge, about the budget of these operations.