There are different types of companies in the Spanish legal system, but approximately 98 % of Spanish companies are limited liability companies (Sociedad Limitada or S.L.). Even though it is important to protect the shareholders from personal liability in the event of bankruptcy, its incorporation does mean a number of additional tax, accounting and mercantile obligations.

A Sociedad Limitada has to present annually a corporation tax return and statutory accounts. Also S.L.has have to file IVA, and on a regular basis some other declarations are usually applicable.

Setting up a company in Spain basically requires all the beneficiaries to sign a title deed before a Spanish Notary Public and to register the company title deed at the Companies House (Registro Mercantil).