Setting up a Limited Liability Company (SL) in Spain is one of the most common and efficient options for entrepreneurs, startups and international companies looking to enter the Spanish market. The Spanish Limited Liability Company offers flexibility, limited liability and a stable legal framework, making it an ideal structure for those exploring how to start a business in Valencia in a secure and structured way.
This guide explains how to start a business in Spain step by step, with a particular focus on setting up a business in Valencia, one of the leading business and innovation hubs in Southern Europe.
1. Obtain the Negative Name Certificate
The first step in company formation in Valencia is to ensure that the chosen company name is available. This is done by requesting a Negative Name Certificate from the Spanish Central Commercial Registry.
2. Open a Spanish bank account and deposit share capital
To incorporate a Limited Liability Company, it is necessary to open a Spanish bank account and deposit the share capital. The legal minimum is €1, although €3,000 is still commonly used in practice.
The bank will issue a certificate confirming the deposit.
3. Obtain a NIE (Foreigner Identification Number)
This is a critical step, as it prevents the process from moving forward if not completed. The NIE identifies a foreign individual before Spanish authorities and is essential when starting a business in Valencia as a foreigner.
It can be requested in Spain at police stations or abroad through Spanish embassies and consulates.
4. Draft the company bylaws
The bylaws define how the company operates: corporate purpose, registered address, share capital and management structure.
If your objective is setting up a business in Valencia, this is where the company’s registered office will be established.
Invest in Valencia can connect you with specialised law firms in the city to ensure your bylaws are correctly drafted and legally compliant.
5. Sign the public deed before a notary
Once all documentation is ready, the shareholders must appear before a notary to sign the deed of incorporation of the Spanish Limited Liability Company.
6. Obtain the provisional tax identification number (NIF)
After incorporation, a provisional NIF is requested from the Spanish Tax Agency, allowing the company to operate while the process is finalised.
7. Register the company with the Commercial Registry of Valencia
The company must be registered with the Provincial Commercial Registry. In Valencia, this step grants the company full legal personality.
8. Tax and labour registration
Finally, the company is registered for tax purposes (Corporate Tax, VAT and business activity tax), the definitive NIF is obtained and, if the company plans to hire staff in Valencia, it is registered with the Spanish Social Security system.
Why set up a business in Valencia?
Valencia offers a unique combination of an innovative business ecosystem, international talent, excellent quality of life and competitive operating costs, making it a strategic location for companies seeking long-term growth through company formation in Spain.
If you need more detailed guidance on how to start a business in Valencia, have specific questions or would like personalised support for starting a business in Valencia as a foreigner, you can contact the Invest in Valencia team, who will support you throughout the entire process of setting up a business in Valencia.
