Setting Up a Company in Spain: Shelf Company or Incorporation Ab Initio?

Spain is one of the main gateways to the European and Latin American markets. For foreign businesses looking to establish a presence in Spain, a key strategic question often arises: Is it better to incorporate a new company or acquire a pre-existing shelf company? We analyse both options in terms of advantages, disadvantages, timeframes, and costs.

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Company incorporation in Spain: SA vs SL

In Spain, companies can incorporate as either an S.A. (Sociedad Anónima) or an S.L. (Sociedad Limitada). Each has distinct legal and financial implications regarding capital requirements, liability, and shareholder structure, making them suited for different types of businesses.

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