In short:
- The SL is the most common option: minimum capital of €3,000 and liability limited to the capital contributed.
- The SA needs more capital: €60,000, with 25% paid up from the start.
- The general partnership sets no minimum capital, but partners carry unlimited and joint liability.
- Corporate tax: a general rate of 25%, 15% for new companies, 20% for cooperatives and 10% for non-profit entities.
- VAT: standard 21%, reduced 10% and super-reduced 4%.
Choosing the right legal structure for your company is a key decision, since it sets the legal, tax and operational responsibilities of your business. In Spain, the various company types are designed to meet different business needs. This guide offers a detailed look at the legal and tax aspects of each type of company, so you can make an informed decision.
Contents
Main types of companies in Spain
Limited liability company (Sociedad Limitada, SL)
The limited liability company is the most common option for business owners, thanks to its flexibility and its protection against financial risks.
Legal structure and incorporation requirements
Legal responsibilities
Tax obligations
Public limited company (Sociedad Anónima, SA)
The public limited company is intended for larger-scale businesses that want to attract investment.
Legal structure and incorporation requirements
Legal responsibilities
Tax obligations
General partnership (Sociedad Colectiva, SC)
The general partnership is a traditional form based on trust and personal commitment between partners.
Legal structure and requirements
Legal responsibilities
Tax obligations
Limited partnership (Sociedad Comanditaria)
The limited partnership makes it possible to combine partners with different levels of liability.
Legal structure and requirements
Legal responsibilities
Tax obligations
Special types of companies
Cooperative society (Sociedad Cooperativa)
Cooperatives promote democratic management and collective benefit.
Legal structure
Tax advantages
Worker-owned limited company (Sociedad Limitada Laboral, SLL)
The SLL puts the emphasis on employee participation in the ownership and management of the business.
Legal features
Tax benefits
Tax comparison and general points
Corporate tax rates
VAT and other taxes
Accounting and registration obligations
Frequently asked questions about types of company in Spain
What tax does each type of company pay?
Commercial companies pay corporate tax (Impuesto de Sociedades). The SL, the SA, the general partnership, the limited partnership and the cooperative are all subject to it. For a general partnership, there can be taxation under personal income tax (IRPF) in certain cases.
What is the general corporate tax rate?
The general rate is 25%. New companies apply 15% during their first two financial years with a positive result. Cooperatives are taxed at 20% and non-profit entities at 10%.
What VAT rates exist?
There are three: standard 21%, reduced 10% and super-reduced 4%. VAT is filed quarterly with Modelo 303 and summarised each year with Modelo 390.
How much minimum capital do I need to set up the company?
It depends on the form. The SL requires €3,000 and the SA €60,000, with 25% paid up from the start. The general partnership has no minimum capital set, and the limited partnership does not require one either.
What accounting obligations does a company have?
You must keep the mandatory books, such as the journal, the inventories and the minutes. You also have to draw up the annual accounts. They are approved and deposited within the first 7 months after the fiscal year-end.
How does liability differ between an SL and a general partnership?
In an SL, liability is limited to the capital contributed. In a general partnership, the partners carry unlimited and joint liability, including their personal assets.
Things to consider when choosing the right company
Assess factors such as:
For example, small family businesses commonly opt for an SL, while organisations focused on social employment prefer an SLL or a cooperative.
| Legal form | Minimum capital | Liability | Taxation |
|---|---|---|---|
| Limited liability company (SL) | €3,000 | Limited to the capital contributed | Corporate tax 25% (15% for the first two years for new companies) |
| Public limited company (SA) | €60,000 (25% paid up) | Limited to the value of the shares | Corporate tax and VAT similar to an SL |
| General partnership (SC) | Not set | Unlimited and joint | Corporate tax; possible IRPF taxation in certain cases |
| Limited partnership (Comanditaria) | Not required | General partners unlimited; limited partners limited to capital contributed | Subject to corporate tax |
| Cooperative society | Set by the bylaws | Limited to the capital contributed | Corporate tax at 20%, with favourable particularities |
| Worker-owned limited company (SLL) | Not specified | Not specified | Standard corporate tax regime |
Information as of June 2026. This guide is for general information only and does not constitute legal or tax advice. Rules and amounts may change. Check with a professional or with the official source before making decisions.
