The limited company (S.L.) is the most popular legal form chosen by Spanish entrepreneurs. With over a million limited companies established compared to just 90,000 public limited companies, it is clear that small and medium-sized business owners prefer this structure. Establishing an S.L. is the natural step for many self-employed individuals who see their business grow and need greater legal protection. The good news is that the procedures have been significantly simplified, and the process can be completed in 2 to 4 weeks if everything is prepared.
Before starting with the administrative steps, it is important to understand what a limited company is and why it is so popular. An S.L. is a business structure in which the partners have limited liability to the capital they contribute. This means that if the company has debts, your personal assets are protected. Additionally, the taxation is more advantageous than that of self-employed individuals in many cases, and it offers greater credibility with clients and suppliers.
Step 1: Register the company name
The first step is to register the name of your future company with the Central Commercial Registry. Here you will obtain what is known as a negative certification of the company name, which certifies that the chosen name is not registered by another company. This document is essential to proceed with the process.
To request the certificate, access the website of the Central Commercial Registry and submit an application indicating up to five possible names for your company. This way, if the first one is not available, you have immediate alternatives. The cost is around 16 euros. Once granted, the name is reserved for six months, although it is only valid for three months before a notary. If you do not use it within that period, you will need to renew it.
Step 2: Open a bank account and deposit the share capital
With the name certificate in hand, you must open a bank account in the name of the company. In this account, you will deposit the minimum share capital required by law. Since the approval of the
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