Ways of running a business in Spain. Which is the best?


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Ways of running a business in Spain

When embarking on a business venture in Spain, a crucial question that looms large is determining the optimal legal form for your enterprise. Each business faces distinct necessities and liabilities, making this decision pivotal. To aid you in this choice, here is a concise recap of the main options, along with their respective pros and cons.


This is the most efficient way to start your venture right away. The registration process is simple and can be completed using your digital signature, eliminating the need to visit any office (be sure to check out the accompanying article for more details). We recommend this option, especially when you are uncertain about the potential success of your business. It offers the advantage of an easier fallback plan in case things don’t work out as planned. Additionally, once your business begins to flourish, you have the flexibility to explore other options and make transitions as needed.


  • Quick registration
  • Easier stepping back
  • Less accounting duties
  • No minimum capital.


  • Full liability. You respond with you present and future assets.
  • Tax rates is progressive. The more you earn, the more you pay.

Limited company (SL)

The most prevalent legal form for businesses in Spain is the limited company (SL). Currently, there are over 1 million limited companies, constituting 35% of all businesses, ‘autonomos’ are 55%. One of the attractive aspects of the SL is its limited liability, although certain exceptions apply. Another advantage is the flat tax rate of 25% (15% for the first two years).

Previously requiring a minimum capital of 3,000 €, the minimum capital has recently been reduced to just 1 €. Traditionally, setting up an SL took around 4-6 weeks, but thanks to CIRCE, it’s now possible to establish a company within 48 hours. The associated notary fees amount to 60 € + VAT, and the Registro Mercantil charges 40 € + VAT. Our team is well-equipped to provide assistance in this matter, making the process seamless for you. Very soon, you will have the convenience of signing documents at the notary online, eliminating the need to be physically present


  • Limited liability
  • Better presence than an “autonomo”
  • Flat tax rate


  • More accounting duties
  • Any change on the address, shares, etc. you have to go to notary.

Comunidad de bienes / Partnership

A partnership is a way to venture into a business with another partner while retaining the advantages of being a self-employed ‘autonomo.’ The tax bill is shared among the partners based on the agreed-upon percentage, making the distribution of profits more tax-efficient. The capital invested can take various forms, such as property, money, or work, without any minimum requirement.

However, one of the challenges of a partnership is the setup process, which tends to be more time-consuming compared to a limited company.


  • Tax efficiency of the profit
  • No minimum capital


  • Full liability shared between the partners and . You respond with you present and future assets.
  • Slow process to set it up.
  • Tax rates is progressive. The more you earn, the more you pay.  


A Cooperative is the union of individuals to establish a collective organization aimed at producing goods or providing services. However, it hasn’t seen widespread success in Spain, with only around 17,000 cooperatives existing. To form a cooperative, a minimum of 3 members is required, and the voting rights are determined by the shares held rather than the capital contributed by each partner. The primary objective is to distribute profits equally among the members. Considering the complexity and commitment involved, we recommend this option mainly for robust and well-established projects.


  • Democratic decision-making
  • Limited liability


  • Slow decision-making
  • A percentage of the profits should be kept on the company.
  • Limitation on hiring no members workers.

If you are contemplating setting up a business, taking the time to carefully consider the best option is crucial. Each case is unique, and what works for your neighbor may not necessarily suit your own circumstances. Our dedicated team is eager to provide assistance throughout this process, ensuring the success of your business endeavour.

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