Starting a Business in the UK is a great alternative to the Spanish S.L. Entrepreneurs in Spain are increasingly seeking faster, cost-effective ways to start their businesses. Compared to the Spanish “Sociedad Limitada” (S.L.), starting a Ltd company in the UK has become a very attractive option.
In this article, we’ll explain the main differences between both structures, the advantages of a UK company, and why it could be a better choice for your project.
Ltd. in the UK vs. S.L. in Spain: Key Differences
Both the Ltd. in the UK and the S.L. in Spain are limited liability companies. This means that the shareholders are not personally liable for the company’s debts. However, there are key differences that may influence the decision when choosing to start a business in the UK or in Spain:
- Minimum share capital: In Spain, it’s mandatory a minimum capital of 1 euro. However, if the capital is less than 3,000 euros, certain requirements apply. For this reason, it’s recommended to have at least that amount. In the UK, the capital can be as low as 1 GBP. Private companies do not have a legal minimum share capital requirement.
- Time to set up: On one hand, setting up an S.L. in Spain can take anywhere from approximately 15 days to two months. On the other hand, you can set up a Ltd. in the UK within 24-48 hours online.
- Costs and bureaucracy: In the UK, the procedures are simpler, there is no need for a notary, and annual costs are considerably lower.
- Operational flexibility: UK companies have more freedom to amend articles of association, appoint directors, or make structural changes without lengthy or costly registrations.
Advantages of Setting Up a Business in the UK
Starting your business in the UK offers benefits beyond just saving time and money. Here are some of the most notable advantages:
- 100% online incorporation: No need to travel or sign in front of a notary. The entire process can be done online, even from outside the UK.
- International image: A company based in the UK conveys solidity and professionalism, especially if you work with international clients.
- Lower bureaucratic burden: Accounting and tax obligations are simpler and more predictable than in Spain.
- Ideal for digital businesses: Freelancers, agencies, online stores, or developers find the Ltd. a very flexible legal framework suited to the digital age.
- Lower costs: The annual maintenance of an Ltd. is usually lower than that of an S.L., especially if there are no employees on the payroll.
Can I Start a Business in the UK from Spain?
Starting a business in the UK from Spain it’s possible, but you must consider the tax implications. Additionally, having an office or employees in Spain could generate a permanent establishment and additional tax obligations.
For this reason, it’s crucial to seek the help of accounting experts and consult a specialised consultancy firm to structure the company properly and avoid problems with the tax authorities, as well as double taxation.
Who is This Alternative For?
Starting a business in the UK is not suitable for everyone. However, it’s ideal for many entrepreneurs seeking agility and efficiency. The most common profiles include:
- Freelancers working with international clients
- Tech startups looking to scale quickly without legal constraints
- Consultants and agencies providing digital services
- Digital nomads who move between countries but need a formal business structure
If you fit into any of these profiles, setting up a business in the UK could be the perfect solution to professionalise your activity.
Starting your Business in the UK vs. in Spain?
Starting a business in the UK can be an excellent alternative to the Spanish S.L., especially if you value agility, cost reduction, and administrative simplicity. However, to ensure everything is done correctly, it is highly recommended to consult a specialised advisory service that can guide you throughout the process. This way, you will avoid potential legal and tax issues and focus on growing your business efficiently.
