Since September 2022, Spain has enforced the “Crea y Crece” Law, which allows you to establish a Limited Liability Company (Sociedad Limitada, SL) with just €1 in share capital. However, behind this attractive headline, there are several important details to keep in mind.
What you need to know:
Company formation process:
Legal advice: Lawyers recommend not limiting yourself to the minimum capital. Starting with €1,000 to €1,500 provides better financial security, access to credit, and business credibility.
What you need to know:
- Until the company reaches €3,000 in capital, it is required to allocate 20% of net profits to a legal reserve.
- In case of liquidation, founders are personally liable to creditors for up to €3,000.
- The actual costs of registering an SL range from €250 to €1,000, including notary fees, registration, and possible legal services.
Company formation process:
- Obtain a certificate of unique company name (€13–14).
- Open a bank account and deposit the share capital.
- Draft the company bylaws.
- Sign the incorporation deed before a notary (€150–300).
- Register the company with the Commercial Registry and obtain a tax ID (NIF) (€100–150).
- Notify the Tax Agency and register with the Social Security system.
Legal advice: Lawyers recommend not limiting yourself to the minimum capital. Starting with €1,000 to €1,500 provides better financial security, access to credit, and business credibility.
