How to set up business as a partnership in Spain…

A partnership is formed of two or more people and no minimum investment is required. Any debts or financial obligations are divided between the members of the partnership. To set up a partnership, the following steps will need to be completed:

  • Sign a partnership agreement (contrato de constitución) before a notary
  • Register to pay IAE (Impuesto de Actividades Económicas)
  • Register a declaration for starting a business (Declaración Censal de Inicio de Actividad). This can be done at the tax office (Delegación de Hacienda).
  • Register for social security
  • If there are business premises, the person must apply for an opening licence (Licencia Municipal de Apertura) at the Town Hall

Note: The partnership agreement is not compulsory. However, if the partners choose to sign a partnership agreement, the company name must include Sociedad Civil.