Parastoo Legal Group
How to Incorporate a Company in Spain from the Middle East
A complete guide for Middle Eastern entrepreneurs and investors setting up a business entity in Spain.
Spain's strategic position as a gateway between Europe, Africa, and Latin America makes it an attractive jurisdiction for Middle Eastern businesses looking to expand westward. Whether you are setting up a trading company, an e-commerce business, a holding structure, or a European subsidiary of your Middle Eastern enterprise, Parastoo Legal Group has incorporated over 100 companies for clients from the UAE, Iran, Saudi Arabia, Kuwait, and beyond.
Choosing the Right Entity: S.L. vs S.A.
The Sociedad de Responsabilidad Limitada (S.L.) is the most common choice for foreign entrepreneurs. It requires a minimum share capital of €3,000, offers limited liability, and can be managed by one administrator. The Sociedad Anónima (S.A.) is suited to larger projects requiring more complex capital structures. We advise on the optimal entity type based on your business plan, investor requirements, and tax objectives.
The NIE: Spain's Foreigner Identification Number
Before incorporating a company, all foreign shareholders and administrators must obtain a NIE (Número de Identificación de Extranjero). We manage NIE applications through the Spanish Consulate in your country or directly in Spain — often without requiring your physical presence.
Step-by-Step Incorporation
The process: (1) Reserve company name at Registro Mercantil Central; (2) Open a Spanish bank account and deposit share capital; (3) Draft company statutes and sign the incorporation deed before a notary; (4) Register with the Tax Agency (AEAT) to obtain a CIF tax number; (5) Register at the Commercial Registry. Total timeline: 2–4 weeks.
Banking for Middle Eastern Founders
Opening a Spanish bank account as a non-resident foreign national can be challenging. We work with specific banks and account managers who understand the compliance requirements of Middle Eastern clients and have successfully onboarded hundreds of our clients.
Post-Incorporation: Compliance Obligations
Once incorporated, your Spanish company must file quarterly VAT returns, corporate tax annually (25% standard, 15% for new companies in first profitable years), annual accounts at the Commercial Registry, and maintain proper bookkeeping. Our accounting team provides full ongoing compliance support.