New limited company (SLNE) in Spain: an entrepreneurial legacy

Are you thinking about starting your first business but feel overwhelmed by all the paperwork? The New Limited Company (Sociedad Limitada Nueva Empresa, SLNE) was created precisely to tackle this issue. Although the SLNE no longer exists as a separate legal form since 2022, it revolutionised how companies are formed in Spain. Here’s a clear overview of what the SLNE was and how its advantages continue to influence modern limited companies.

Summary

1. What was the New Limited Company (SLNE)?
2. Key features of the SLNE
3. Why entrepreneurs chose the SLNE
4. SLNE setup requirements
5. Examples of the SLNE in practice
6. Advantages and disadvantages of the SLNE
7. The SLNE’s legacy in company formation
8. Starting your business is easier than ever

If you want to understand other types of companies available in Spain, check out our complete guide to understanding the types of companies in Spain.

What was the New Limited Company (SLNE)?

Introduced in 2003, the SLNE was a special type of limited company designed to support entrepreneurs by dramatically simplifying setup procedures. It enabled businesses to be registered in just 48 hours, using digital tools and a single notary appointment to complete the process.

Based on the traditional limited company, it offered streamlined documents and electronic forms, making company creation fast, flexible and less bureaucratic.

For a detailed look at modern limited companies (SL) which succeeded the SLNE, see our article Limited liability company (SL) in Spain: setup guide, advantages & risks.

Key features of the SLNE

Fast incorporation: companies could be registered within 48 hours

Digital process: used a Single Electronic Document (DUE)

Standardised articles of association: simplified form templates

Flexible business objectives: generic purpose allowed easier changes

Why entrepreneurs chose the SLNE

Quick setup

The standout benefit was speed — while regular limited companies might take weeks, the SLNE could be ready in a couple of days. This made a huge difference for entrepreneurs eager to start trading quickly.

For more on how fast incorporation benefits startups, see our public limited company (S.A.): Is it the right fit for your business?

Simplified process

The SLNE used standard articles and deeds that were pre-approved, enabling a mostly telematic registration via DUE and an automated notary scheduling system.

Reduced bureaucracy

By replacing complex paperwork with predefined forms, entrepreneurs saved on legal fees and avoided administrative headaches.

Limited liability

Like conventional limited companies, shareholders’ personal assets were protected — their liability was limited to their capital investment.

Flexible business purpose

Startups could alter their business activity freely without needing to amend articles of association — ideal for pivoting or adding services.

Tax advantages

Special tax benefits included:

• Deferred transfer tax payments without guarantees
• Corporate tax payment deferral for the first two years
• Exemption from early corporate tax instalments
• Access to dedicated business savings accounts

SLNE setup requirements

Share capital

• Minimum €3,012
• Maximum €120,000
• Must be fully paid in cash at formation

Shareholders

• Maximum of five individuals — all must be natural persons
• Well suited for family projects or small partnerships

For other forms suitable for small groups and family projects, see our article about general partnership: what it is and how to set one up.

Company name

The name followed a specific format — surname and first name of a shareholder plus a unique alphanumeric code generated by the CIRCE system. The name could be changed free of charge within the first three months.

Incorporation process

1. Register the company name with the Directorate-General for Industry and SMEs
2. Request a tax ID (NIF) from the tax authorities
3. Execute a public deed before a notary
4. Register at the Companies Registry

Examples of the SLNE in practice

Tech startup: three developers forming a company with minimum capital to begin operations quickly and leverage flexible business purposes.

Family restaurant: four relatives creating a company to get licences and trade swiftly with minimal delays.

Consultancy: two consultants partnering under the SLNE to offer professional services while retaining flexibility.

Advantages and disadvantages of the SLNE

Main advantages

• Incorporation within 48 hours
• Fully online procedure with no need for physical visits
• Free name alteration soon after formation
• Flexibility in business activities
• Simplified accounting requirements
• Access to specific tax benefits

Key drawbacks

• Shareholders limited to five natural persons only
• Share capital capped at €120,000
• Naming convention not ideal for branding purposes
• Only cash contributions accepted — no assets in kind
• Flat tax regime less favourable in some scenarios

The SLNE’s legacy in company formation

Though phased out in 2022, the SLNE’s innovations live on. Today most limited companies use an express formation process inspired by the SLNE, including:

• Single Electronic Document (DUE) for fast registration
• Standardised articles and deeds
• Electronic scheduling of notary appointments
• Minimum share capital reduced to just €1

Starting your business is easier than ever

Thanks to the SLNE, company formation in Spain is now simpler, faster and much more accessible. With just €1 minimum capital and fully digital processes, launching your business is within reach.

Are you ready to take the next step? The SLNE paved the way — now it’s your turn to make your business idea a reality.