Setting up an SL in Spain? 7 decisions to make before you sign
November 2026. In the third quarter, 2.3% more companies were incorporated in Spain than in the same period of 2025. If you’re thinking about starting 2027 with an SL (a Spanish limited liability company), that figure gives you context, but it doesn’t answer the question that matters: what will change in your business once you start operating as a company?
The answer is different if you’re bringing in a partner, if you want to reinvest part of what you earn, or if you already have a business up and running and need to move it over without interrupting your work. These are seven decisions worth making before you sign.
1. Define why you want to set up a company
“I’m billing more” is a good reason to review your numbers, but it isn’t enough to make the decision. A professional who works alone and needs to take out almost everything she earns to live on is not in the same situation as two people who want to share ownership of a business and reinvest part of the profits.
Try writing down in one sentence what you want to achieve: “I want to bring someone in as a partner, not as a supplier,” “I want to reinvest to open a second location,” or “we need to define how three of us are going to make decisions.” If the only reason is that someone told you “you pay less tax with an SL,” ask for a comparison based on your own figures before taking the step.
2. Keep share capital separate from the money you need to get started
The minimum share capital for an SL is €1, but that doesn’t mean setting one up costs €1, or that you can operate with that amount. In addition, below €3,000 special rules apply to the legal reserve and to the partners’ liability if, when the company is wound up, there aren’t enough assets to meet its obligations.
Work out three separate figures: how much you’re going to contribute, how much incorporation costs, and how much cash you need available until you start getting paid. If you have €900 in monthly expenses and your first client pays you after you’ve covered two months of costs, you need at least €1,800, not counting the cost of the paperwork or a buffer for delays.
A useful exercise: push that first payment back 30 days in your forecast. If that delay stops you from paying a supplier or covering your own expenses, you already know what you need to negotiate before you start: an advance payment, different payment terms or more cash on hand.
3. If you have partners, agree on how you’ll work together before you split the percentages
Owning 50% each doesn’t make clear who works full-time, who brings in clients, who gets paid for their work, or what happens if one of you wants to leave in six months. Nor does it settle who can commit the company to a major expense.
Put three specific situations on the table: one of you wants to hire and the other doesn’t; more money needs to be put in and one of you can’t; one of you stops working on the project but wants to keep their stake. You don’t need to resolve everything in the first conversation, but you do need to spot where you disagree. With that, you can decide what should go into the articles of association and what is better covered in a shareholders’ agreement.
4. If you’re already self-employed, plan the switch client by client
Signing the incorporation doesn’t, by itself, make clear who should deliver, invoice or collect payment for work that’s already underway. Make a list of active contracts, accepted quotes, advance payments, outstanding invoices, rentals and business tools. Note whose name each one is in and what needs to be checked before changing it.
For example: if a client pays you an advance in December and you’re delivering the project in January, don’t assume the final invoice should come from the SL just because you’ve already set it up. First check how the work was contracted and how the advance was documented.
To organise the transition, add a column to your list: “What happens if this isn’t sorted by the start date?” A contract with your main client deserves more attention than changing the account holder on a subscription.
5. Compare the full first year, not just tax rates
Ask for two scenarios with the same sales and expense forecast: staying self-employed and operating through an SL. In both, work out how much you need to receive each month to live on and how much you want to leave in the business. Include the cost of ongoing accounting and management, and check how your pay, your role and your social security contributions fit together.
Run the comparison with a less favourable scenario too. What happens if a major client leaves or if sales are delayed by three months? If the SL only looks like a good option when everything goes to plan, you haven’t finished running the numbers yet.
6. Set a date for your first sale, not just for signing
Setting up the company is one thing. Having everything ready to operate is another. A shop that’s going to open premises has to look at different issues from a consultancy that works from home. Depending on the activity, you may need to check permits, premises requirements, insurance, contracts or invoicing conditions.
If you want to start in January, plan backwards from your first real milestone: opening to the public, hiring someone or issuing your first invoice. Make a list of what must be sorted before that day, who’s responsible for each task and what depends on third parties. That way you can tell apart what you can get done in November from what a signature won’t solve.
7. Ask for a quote that covers the day after incorporation
The quote for setting up the company and the quote for monthly management answer different questions. Ask them to tell you what each one includes, what’s charged separately and who handles the first steps after incorporation. If you’re coming from self-employment, ask specifically whether planning the transition is included or quoted separately.
For your first meeting with the advisory firm, bring a sheet with five pieces of information: why you want the SL, who’s involved, how much money you need until your first payment comes in, which contracts are still open and when you want to start. With that, you can ask for a recommendation tailored to your case: set up now, prepare the change for later, or stay as you are.
If you’re self-employed or thinking about setting up a company in Spain, at AGL Asesoría García López we’ll help you assess which option suits your business, and we’ll support you from the first formalities through to your company’s growth. Send us a private message for more information.