Create a startup

Although the costs of starting up a Startup in Spain can differ greatly depending on the objectives sought with its creation, there are a number of basic aspects to consider in all cases, similar to those required to establish any company. Thus, when an entrepreneur constitutes a Startup, the first step is to determine the legal nature, taking into account the needs that may arise to a startup in terms of participation deals and receipt of third-party investment:

  • Opting to act as a freelancer is not the best option for a project that is going to have several partners, or if it will require the investment of third parties. Since most of the cases are considered as co-development projects, this modality is usually not viable for a startup.
  • Civil societies or communities of goods are also inadvisable for a startup, unless the investment is expected to be exclusively linked to the FFF, as it is not suitable for obtaining aid through business angels, or venture capital.
  • Cooperatives have the peculiarity that each cooperative member has a vote regardless of their contribution to capital, assuming a problem when making decisions in the absence of balance on the basis of ownership of capital.

Therefore, it is the limited liability companies and public limited companies the legal forms that are outlined as the best options to carry out such a project.

Under the Law, which applies in this respect to both S.A.s and S.L.s, either of these corporate forms can be set up as, or can subsequently become, a sole-shareholder company. In general, such requirements may be deemed for the purpose of providing information, although compliance is of the utmost importance since, if six months elapse from the date on which the company acquires sole shareholder status without such circumstance having been registered at the Commercial Registry, the sole shareholder will bear personal, unlimited and joint and several liability for any company debts assumed during the period of sole-shareholder status.

The basic costs associated with these two legal forms are summarized in the following concepts:


To all of the above, the following costs can be added:

  • In case of choosing to have a local, fees for activity license (according to area and type of activity), waste fee, IBI, IAE, among others.
  • If workers  are  hired,  after registering  with  the  Social  Security,  through  the  Code  of  Contribution  Accounts,  the  social insurance costs of each worker will be added too.

To sum up, starting a Startup in Spain can range from € 300 to € 4,000, not counting local, personal or investment, depending on the particular needs of the project.

Source: Invest in Spain