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Softlanding Foreign Companies in Spain: Strategies for your International Expansion

LetsLaw / Commercial Law  / Softlanding Foreign Companies in Spain: Strategies for your International Expansion
Softlanding de empresas extranjeras en España

Softlanding Foreign Companies in Spain: Strategies for your International Expansion

Business expansion and the opening up of new commercial opportunities have led many international companies to consider setting up in Spain. A key process for this expansion is softlanding, a term that refers to strategies and support aimed at facilitating the entry and establishment of foreign companies in a new market. This process is especially important for startups, which can benefit significantly from the fiscal, operational and market advantages that Spain offers.

Softlanding is a set of strategies and services designed to facilitate the entry of foreign companies into a new market, minimising the risks and costs associated with the initial establishment. This process includes assistance with legal, tax, administrative and operational aspects, providing companies with a smooth and successful landing.

Benefits of Softlanding for Startups

Spain, with more than 47 million consumers, is a vast and vibrant market. Moreover, thanks to its strong bilateral agreements and trade relations, it acts as a strategic gateway to other European and Latin American markets, allowing companies to expand quickly and efficiently. The country stands out for its innovation-friendly environment, with numerous technology parks and innovation hubs located in cities such as Madrid, Barcelona and Valencia. These centres facilitate collaboration and networking between startups, investors and large companies, fostering technological development and the creation of synergies.

Spain offers various tax incentives and subsidies for technology companies and startups. These benefits can result in significant savings in initial operating costs, providing a favourable financial environment that supports the growth and sustainability of new companies. In addition, the country has a highly skilled and competitive workforce, especially in sectors such as technology, biotechnology and renewable energy. This availability of specialised talent is a key asset for companies seeking to innovate and remain competitive in the global market.

Spain is not only an excellent place to do business, but also to live. With its pleasant climate, high-quality healthcare system and rich cultural and gastronomic offerings, the country attracts entrepreneurs and skilled workers from all over the world, making it an ideal place to settle down both professionally and personally.

What do I need to set up a limited company?

In order to establish a Limited Liability Company in Spain, it is necessary to comply with a series of legal requirements and procedures. The first step is to obtain a N.I.E. (Foreigners’ Identification Number). This number is personal, unique and exclusive, and must be obtained by all foreigners who, due to economic, professional or social interests, are related to Spain. Both the foreign founding partners and the directors of the S.L. must have a N.I.E. To obtain it, it is necessary to present the application at the Police Station or at the Foreigners’ Office, together with the notarised and apostilled passport.

The next step is to obtain the N.I.F. (Número de Identificación Fiscal), which is the tax identification number assigned to legal entities. It is necessary to obtain the N.I.F. for the parent company (if it is a foreign company) and for the new subsidiary company to be incorporated in Spain. The application for the provisional N.I.F. can be made to the Tax Agency by presenting form 036, passport, certificate of validity and notarised and apostilled charges.

The Limited Liability Company must have a registered office in Spain, which will be the place where the administrative and management activities are carried out. It is necessary to have a physical and duly registered address as the company’s registered office. This can be an office, business premises or even the director’s private address.

What Should I Be Clear About Before Incorporating a Limited Company?

The minimum share capital required in Spain for Limited Companies is €3,000. However, in Spain it is permitted to start with a capital of up to 1€, provided that 20% of profits are allocated to the legal reserve until the reserve together with the share capital reaches €3,000. The share capital can be contributed in cash or in kind (goods and rights). In the case of non-cash contributions, a valuation of the assets contributed is required.

In order to pay up the share capital, it is necessary to open a bank account in the name of the future S.L. with a financial institution in Spain. The bank will provide a certificate of deposit of the share capital, which must be presented together with the deed of incorporation before a notary.

The Limited Liability Company must appoint one or more directors, who will be responsible for the management and representation of the company. The directors may be partners or third parties, and may hold office in various ways: Sole Director, Joint and Several Directors, Joint Directors or a Board of Directors.

Keys to Successful Softlanding in Spain

Spain is an attractive destination for business expansion thanks to its large market, tax incentives and favourable environment for innovation. To achieve a smooth and successful landing, it is crucial to understand and comply with the legal and governing requirements, and take advantage of the benefits the country offers. With proper planning and expert support, your company can establish itself in Spain efficiently and effectively, opening up new opportunities for growth and international expansion.

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