Setting up a limited company in Spain: what it really costs
The Sociedad de Responsabilidad Limitada (SL or SRL) is the most used legal form in Spain for starting a business. Over 100,000 SLs were incorporated in 2025, according to the Central Companies Registry. The reason is straightforward: low minimum share capital (€3,000), liability limited to the capital contributed and its own tax regime (Corporate Tax at 25%, with a reduced 15% rate for the first two years for newly created companies).
The full process, from reserving the name to tax registration, can be completed in 7-15 business days. If you use the CIRCE system for online incorporation, it can be reduced to 48-72 hours in the best cases.
Step 1: negative name certificate
Before incorporating, you need to reserve the company name. This is requested from the Central Companies Registry (not the provincial one). You can request up to 5 names in order of preference.
Cost: €12.02 (fee) + €3.64 per additional name. Timeframe: 24-48 hours online. The reservation lasts 6 months, extendable by 3 more months.
Tip: avoid generic names ("Digital Solutions SL") as they are usually taken. Use original combinations or your own surname.
Step 2: open a bank account in the name of the company being formed
You need to deposit the minimum share capital of €3,000 in a bank account in the name of "the company being formed". The bank issues a deposit certificate that the notary needs for the deed.
Cost: €0 at most banks (opening is free). Some online banks do not allow accounts for companies being formed; check beforehand.
Since the reform of Royal Decree-Law 19/2018, it is also possible to incorporate with non-cash contributions (a computer, furniture, a vehicle), but this complicates the deed and may require an independent expert report if the value exceeds certain thresholds.
Step 3: deed of incorporation before a notary
The deed of incorporation includes the articles of association, the identity of the shareholders, the share capital and its distribution, the governing body and the registered office.
Notary fee cost: between €200 and €400, depending on the capital and length of the articles. For a standard SL with €3,000 capital and standard articles, the fee is around €180-220 before VAT. With copies and VAT, between €250 and €350.
If you use the standard articles approved by Order JUS/3185/2010, the fee is reduced by 30%. These are simplified articles that cover most cases.
At Notaría Online we process the deed of incorporation by video conference. The founding shareholder signs from wherever they are.
Step 4: pay the Transfer Tax (ITP)
Company incorporation is subject to but exempt from ITP since 2010 (corporate transactions, article 45.I.B.11 of Royal Legislative Decree 1/1993). You still need to file model 600 with a €0 result. It is a formal requirement.
Cost: €0. Time: 15 minutes if done online.
Step 5: registration at the Provincial Companies Registry
Once the deed is signed, it is registered at the Companies Registry of the province of the registered office. Until registration, the company exists but as a "company in formation".
Cost: between €100 and €150, depending on the province. Madrid's Companies Registry typically charges around €120; Barcelona, about €130. The legal deadline is 15 business days from filing, though in practice it is usually resolved in 5-10 days.
Step 6: obtain the definitive tax ID and census registration
When the company is incorporated, the tax authority assigns a provisional tax ID. To obtain the definitive one, you need to file model 036 with the registered deed.
On the same model 036, you register the company in the business census, declare the VAT regime, the business tax heading and the economic activity. If turnover does not exceed €1,000,000, you are exempt from paying business tax.
Cost: €0. It is a procedure with the tax authority done online with an electronic certificate.
Step 7: Social Security registration
If the director works in the company and holds 25% or more of the capital (or 33% without management functions), they must register under the RETA (Special Self-Employed Workers Regime). The minimum contribution in 2026 depends on net income, but starts from around €230/month for the lowest brackets.
If you hire employees, you need to register the company with Social Security (model TA.6) and obtain a contribution account code.
Cost summary
- Negative name certificate: €12-16.
- Notary deed: €250-400 (with VAT and copies).
- ITP (model 600): €0.
- Companies Registry: €100-150.
- Tax ID and census registration (model 036): €0.
- Approximate total: €360-570 in official fees and charges.
If you use an agency for the entire process, professional fees range from €200 to €400 extra. Total with agency: €600-900.
Our SL incorporation service includes full management for €395 + VAT (deed, registry processing and tax registration). See the detailed prices.
Online incorporation via CIRCE
The CIRCE system (Business Creation Information and Network Centre) allows incorporating an SL in 48-72 hours through a PAE (Entrepreneur Service Point). The process begins with the DUE (Single Electronic Document), which centralises communication with the notary, registry, tax authority and Social Security.
CIRCE advantages: speed, reduced fees (standard articles mandatory) and a single point of contact. Limitations: only for SLs with standard articles, cash capital and a sole or joint director.
If your company needs customised articles (drag-along clauses, anti-dilution, shareholder agreements elevated to public deed), the CIRCE route does not work and you must use the ordinary process.
Common mistakes when setting up an SL
Choosing a name without checking trademarks. The Companies Registry accepting the name does not mean there is no registered trademark with the same name at the OEPM. Search the trademark database first.
Not planning a shareholders' agreement. If there is more than one shareholder, a shareholders' agreement (private or elevated to public deed) prevents disputes over dividends, exits, drag-along and tag-along rights.
Registered office at home. It is legal, but has implications: tax inspections may visit the registered office. If you prefer privacy, use a business centre or coworking space as your registered office.