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company formation
Company Formation: Everything You Need to Know
 Company Formation: Everything You Need to Know 1024 576 Alejandro Postigo
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Company formation is a crucial step in the process of formalising a business. Whether you are starting your own project or looking to transform your economic activity into a legally recognised entity, understanding the key aspects of company formation is essential. At MJ Consulting, we explain how to properly set up a company, the most common types of companies, and the consultancy services that can help you make the best decisions.

What is company formation?

Company formation is the legal act by which a business entity is created to carry out commercial or economic activities. This process involves defining the business’s legal structure, the rights and obligations of the partners, and establishing how the company will operate under local laws.

Through this process, the partners or shareholders create a distinct legal personality from the individuals that comprise it. This provides benefits such as limited liability, the ability to enter into contracts, and the ability to open bank accounts in the name of the company.

Key Steps in Forming a Company

Company formation involves a series of legal and administrative steps. Although these may vary depending on the type of company and jurisdiction, the most common steps are as follows:

  • Choosing the type of company. The first step is to decide what type of company you wish to form. The most common options include:
    • Limited Company (Ltd). Ideal for small and medium businesses, where liability is limited to the capital invested.
    • Public Limited Company (PLC). Suitable for larger companies with many shareholders. Shareholders’ liability is limited to their contribution.
    • Partnership. For businesses run by two or more individuals who share profits and losses.
    • Cooperative. A business model focused on collaboration and shared ownership.
  • Drafting the Articles of Association. The Articles of Association are the internal rules that will govern the relationship between the company’s shareholders. This document outlines the rights, duties, and the internal organisation of the company.
  • Capital contribution. Shareholders must make a capital contribution to the company, which can be in the form of cash, assets, or rights.
  • Notary deed. After the Articles are drafted and capital contributions are defined, the deed of formation must be signed before a notary. This step formalises the creation of the company.
  • Company Registration. Once the deed has been signed, the company must be registered with the Companies House (or the relevant registration body). This step grants the company its legal personality and allows it to operate legally.
  • Obtaining a Tax Identification Number (TIN). The TIN is necessary for any financial or tax-related activities.

Benefits of Forming a Company

Before forming a company, it’s important to consider the following aspects:

  • Choosing the right company type. The type of company you choose should align with your business goals and needs. Expert consultancy can help guide this decision.
  • Initial and ongoing costs. There are costs associated with both forming and maintaining a company, such as notary fees, registration fees, taxes, and other obligations. It’s important to plan for these expenses.
  • Taxation. Companies are subject to specific taxation based on their type and activities. Understanding your tax obligations and seeking professional advice can help optimise your business’s tax position.
  • Shareholder and management structure. Clearly defining how profits will be distributed, how important decisions will be made, and who will have authority within the company is critical to prevent future conflicts.

How Can We Help You with Company Formation?

At MJ Consulting, we offer specialised services in company formation. Our team of experts will assist you throughout the entire process, ensuring that you comply with all legal and tax requirements and that the company structure you choose is the most suitable for your business needs.

Our services include:

  • Advice on choosing the right company type.
  • Drafting the Articles of Association.
  • Handling notarial deeds and paperwork.
  • Company registration and obtaining the TIN.
  • Ongoing tax and financial advice.

Forming a company is a crucial step in formalising a business and unlocking new opportunities. Although the process may seem complex, the right guidance can simplify it and ensure you meet all legal and tax obligations.

If you would like more information or have any questions, please don’t hesitate to contact us. We invite you to follow us on our social media.

Non-Resident Taxes Spain
Non-Resident Taxes in Spain
 Non-Resident Taxes in Spain 1024 683 Alejandro Postigo
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If you own property in Spain but are fiscally resident in another country, understanding your tax obligations can seem complicated. However, meeting these responsibilities is essential to avoid legal issues and optimise your tax situation. At MJ Consulting, we explain how our consultancy can help you manage your non-resident taxes, from preparing tax forms to handling key documents such as the NIE and electronic certificate.

What Does It Mean to Be a Non-Resident Taxpayer in Spain?

A non-resident taxpayer is someone who does not live in Spain for more than 183 days a year or whose primary economic interests are not based in the country. If this applies to you and you own property in Spain, you are required to meet certain tax obligations. This is where Forms 210 and 211 come into play.

Form 210: The Most Common Declaration for Non-Resident Property Owners

Form 210 is a key tax return for non-residents who own property in Spain. The frequency of its submission depends on how you use your property:

  • Properties not generating rental income: If your property is not rented out, you must submit this form annually, declaring imputed income from real estate.
  • Properties generating rental income: If you rent out your property, you must submit Form 210 quarterly, declaring the income earned.

Our consultancy provides the following services:

  • Preparing and submitting Form 210 on your behalf.
  • Ensuring you meet deadlines and comply with the requirements set by the Spanish Tax Agency.
  • Streamlining the process to make it quick and hassle-free.

Form 211: Taxes Related to Property Sales

If you decide to sell your property in Spain as a non-resident, you are required to submit Form 211. This form is associated with the 3% retention on the sale price, a mandatory withholding at the time of the transaction.

If you decide to sell your property in Spain as a non-resident, you are required to submit Form 211. This form is associated with the 3% retention on the sale price, a mandatory withholding at the time of the transaction.

Our team can help you by:

  • Managing the submission of Form 211.
  • Coordinating the payment of the 3% retention.
  • Explaining how to claim back the retention if applicable.

Additional Essential Services: NIE and Electronic Certificate Processing

In addition to tax management, we offer supplementary services to facilitate your fiscal procedures:

  1. Obtaining the NIE (Foreign Identification Number)
    This document is essential for conducting any transaction in Spain, such as purchasing property, opening a bank account, or fulfilling tax obligations. We handle the entire process to ensure you receive your NIE quickly and effortlessly.
  2. Electronic Certificate
    This certificate is necessary for carrying out online procedures with the Spanish Tax Agency, such as submitting tax forms. Our team manages the process of obtaining and configuring it for you.

Why Choose Us to Handle Your Taxes?

At MJ Consulting, we understand that tax matters can be complex, especially if you are not based in Spain. That’s why we offer a comprehensive service that includes:

  • Personalised advice: We tailor our solutions to your specific needs.
  • Guaranteed compliance: We ensure your taxes are up-to-date and in line with current regulations.
  • Ease and convenience: We take care of all the paperwork so you don’t have to worry.

Meeting your tax obligations as a non-resident in Spain doesn’t have to be daunting. With our help, you can manage Forms 210 and 211, obtain your NIE and electronic certificate, and ensure full compliance with regulations in an efficient manner.

If you would like more information or have any questions, please don’t hesitate to contact us. We invite you to follow us on our social media.