How Your Company Social Security Registration in Spain?
Starting a company in Spain involves several legal steps, and one of the key requirements is completing the company social security registration.
This process ensures that your business complies with Spanish labor laws and that your employees are covered by the public healthcare and pension systems. The Spanish social security system plays a vital role in providing benefits for illness, maternity, accidents, and retirement. In this guide, we will go through each stage of the registration process, focusing on everything a foreign company or entrepreneur needs to know, especially regarding how to get a Spanish social security number and what obligations come after registration.
What is Company Social Security Registration in Spain?
Registering a company with the Spanish social security system is mandatory if you plan to hire employees or if you, as a self-employed person (autónomo), will be working under your own business. This registration connects your business and its workers with the national system for healthcare, pensions, sick leave, and more. Every company must enroll both the business itself and each individual worker. Without registration, you cannot legally hire or pay workers in Spain.
Legal obligation for employers
All companies operating in Spain must register with the General Treasury of Social Security (Tesorería General de la Seguridad Social or TGSS). This applies to both Spanish companies and foreign companies with a branch or employees working in Spain. Failure to register results in penalties and prevents workers from accessing public healthcare and other benefits.
Employer contribution responsibilities
Once registered, companies are responsible for paying social security contributions on behalf of their employees. These payments cover unemployment insurance, work-related accidents, maternity leave, and pension contributions. The rates depend on the type of contract and employee profile.
How to Get a Spanish Social Security Number?
If you are an employer or a worker in Spain, you will need a Spanish social security number. This number is personal, permanent, and required for any type of employment, self-employment, or access to public health services.
Who needs a social security number
Anyone who works in Spain, including company founders, must have a social security number. It is required before signing an employment contract or enrolling in the social security system. This applies equally to Spanish citizens, EU citizens, and non-EU foreigners.
Where to apply for the number
Applications are made through the local office of the TGSS. You can apply online through the Seguridad Social portal, in person at the local social security office, or by appointing a representative like Marfour International Law Firm to handle it on your behalf.
Documents required for individuals
To obtain a social security number, you’ll need to present:
- Valid passport or national ID card
- Spanish NIE (foreigner identification number)
- Job contract or proof of activity (if self-employed)
- Address in Spain
What Documents Are Required for Company Social Security Registration?
Registering a company with the social security system requires submitting specific documentation, depending on the legal form of the company and whether you’re hiring employees.
CIF or company tax number
The company must be registered with the Spanish Tax Office (Agencia Tributaria) and obtain a CIF (Código de Identificación Fiscal), which is the tax identification number. This must be submitted during the social security registration process.
Articles of incorporation
You will need to provide the company’s founding documents, including the deed of incorporation and the registration with the Mercantile Registry (Registro Mercantil).
Certificate of company registration
The Registro Mercantil certificate proving the legal existence and registration of the company is mandatory. This document establishes that the company is officially recognized in Spain.
Power of attorney (if applicable)
If a lawyer or law firm is handling the process, a notarized power of attorney is needed, granting them the authority to act on behalf of the company.
What Are the Steps to Register a Company with Spanish Social Security?
The registration process is usually straightforward but must be done correctly and on time. Here’s a breakdown of the major steps involved.
Step 1 Register the company with the TGSS
Go to the nearest social security office and submit the company’s registration form (TA.6), including all necessary documents. You will be assigned a social security employer number (Código de Cuenta de Cotización or CCC).
Step 2 Register company administrators or owners
If you are a company director or managing partner, you also need to be enrolled in the RETA system (Régimen Especial de Trabajadores Autónomos), which covers self-employed individuals.
Step 3 Register each employee
Each employee must be individually registered before they start working. Use the TA.2 form and include their social security number Spain, employment contract, and job role. This is necessary to ensure proper contributions and coverage.
Step 4 Activate the RED system
Employers in Spain must enroll in the RED system to communicate electronically with the Social Security administration. This includes filing monthly reports and processing employee updates online.
What Happens After Company Social Security Registration?
Once your business is registered, there are ongoing obligations and responsibilities related to social security.
Monthly payments and reporting
Employers must submit monthly contribution payments for each employee. These are typically done electronically and calculated based on salaries and contract types. Contributions are split between the employer and the employee.
Employee benefits coverage
From the first day of work, employees are covered by Spain’s public health, unemployment, and pension systems. The company’s proper registration ensures workers have access to these protections.
Inspection and compliance
Social security inspectors may check records to confirm that the company is paying correct contributions and that employees are registered. Non-compliance can lead to fines and back payments.
Can a Foreign Company Register for Social Security in Spain
Foreign businesses operating in Spain—whether through a branch, subsidiary, or with employees based locally—must also complete the registration process. This ensures compliance with Spanish employment and tax laws.
Hiring staff locally
If a foreign company plans to hire local workers, they must be registered as an employer with the TGSS. This includes obtaining a CCC number and making monthly contributions for each employee.
Cross-border posting of workers
For companies sending workers to Spain temporarily, special agreements may apply depending on the country of origin. In such cases, EU Regulation 883/2004 often allows workers to stay enrolled in their home country’s system.
Marfour International Law Firm support
To simplify the process, foreign companies often appoint Marfour International Law Firm to handle all steps—ensuring compliance, document filing, and ongoing communication with the Spanish social security offices.
FAQs
How long does it take to complete the company social security registration in Spain?
Typically, it takes about 1–2 weeks if all documents are in order. It can be faster if done by a legal representative familiar with the process.
Is it possible to register a company online with the Spanish social security office?
Some parts of the process, like employee registration and monthly contributions, can be handled online, especially through the RED system. Initial company registration usually requires in-person submission.
Do I need a Spanish bank account to register my company with social security?
Yes, you’ll need a Spanish bank account to make regular contribution payments.
What happens if a company hires an employee without registering for social security?
This is a serious offense. The company can face fines, back payments, and even criminal charges for fraud in extreme cases.
Can Marfour help with registering multiple employees and handling payroll?
Yes, Marfour International Law Firm provides full employer support, from registration to payroll management and social security contributions.
Conclusion
Company social security registration is a mandatory and foundational step when setting up a business or hiring workers in Spain. From obtaining a Spain social security number for each employee to enrolling the business with the TGSS, every step must be handled carefully to avoid penalties and ensure legal compliance. Whether you are launching a local company or expanding as a foreign employer, Marfour International Law Firm can guide you through each step of the process. Their team ensures that registration is done efficiently, contributions are filed accurately, and your company meets all obligations under Spanish labor law.
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MARFOUR IS READY TO ASSIST YOU IN SIGNING YOUR COMPANY SOCIAL SECURITY REGISTRATION IN SPAIN
Contact us, and Marfour International Law Firm will assist you in signing a Company Social Security Registration in Spain. One of our specialized English-speaking lawyers will contact you immediately to provide assistance. Do not hesitate to send us your enquiry.
