Spain: Companies in 24 hours and for 100.-€
On December 3rd 2010 the Royal Legislative Decree 13/2010 was approved in Spain. Among other measures, it introduced certain guidelines to speed up the process of establishing a company, reducing the disclosure requirements and lower costs by changing some articles of the recent Corporation Law.
In turn, the Spanish BOE of 11th December 2010 published the model articles of association that, in accordance with the provisions of the Royal Legislative Decree 13/2010, should be applied to make use of the rapid establishment regime.
Intended for micro-companies, this Decree aims to speed up the formalities required to establish such companies provided that certain requirements, quoted below, are met in order to achieve business competitiveness.
The requirements of limited liability companies to be eligible for this quick establishment are:
- It may be set up by one or more partners
- The setting-up will be by electronic means
- Partners can not be legal entities
- The governing body can be either a single manager, several joint and several administrators or two joint administrators.
The notary and registration fees suppose a fixed amount of 60.-€ for the notary and 40.-€ for the registrar. The publication in the BORME is exempt from payment.
In the practice, it is only necessary to go to the notary with the required background. The notary will request a negative certification of corporate name to the Central Commercial Register, which is issued by electronic means within one day.
The notary must execute the certificate of incorporation within the same day he receives the certification requested and it will be sent by electronic means to the Spanish Commercial Register, that will qualify it and register it within 7 hours, issuing an electronic certification without additional cost certifying the correct registration of the company and the registration of the appointment of directors, and notifying the Spanish Administration Agency of such process.
The notary himself requests the provisional tax number to the Administration Agency, and the Administration Agency, once received the notification of registration, will notify the definitive nature of such tax number.