Express company formation: advantages and disadvantages

Entrepreneurship is synonymous with opportunity, but also with challenges. In a world where speed makes the difference, express company formation has emerged as an ideal solution for those who want to start their business without delay. This procedure allows a limited company to be set up in just 24 hours, significantly reducing bureaucracy and facilitating access to the market.

How does express company incorporation work?

Express incorporation is a simplified procedure that allows entrepreneurs to register their company electronically, minimising administrative procedures and waiting times. The main features are:

• Speed: A limited company can be incorporated in just 24 hours, from reserving the name to registration in the Companies Register.
• Ease of processing: Standardised forms and a 100% digital procedure are used through platforms such as the Business Creation Information and Network Centre (CIRCE).
• Lower initial cost: Incorporation is allowed with a minimum share capital of 1 euro, which reduces the initial investment.
• Immediate access to the activity: Once the process is complete, the company can operate legally without further delay.

Is it the best option for your company?

Although express incorporation is a fast and efficient alternative, it is not always the most suitable for all businesses, especially those that require a more personalised structure. As it is based on predefined articles of association, this procedure limits the possibility of adapting the company to specific needs, which can be a drawback for companies with more complex structures or with growth forecasts.

Furthermore, the speed of the process means less interaction with legal advisors, which could lead to critical aspects being overlooked that, in the future, may generate conflicts or require modifications that are not always simple. It is also important to consider that this model is designed for simple corporate structures and does not offer the same flexibility as a traditional incorporation process, where it is possible to define a more detailed legal framework adapted to the interests of the partners from the outset.

A step forward with the right planning

Opting for an express incorporation can be the right decision if you take into account the nature of the business, its short- and long-term needs and the importance of having a well-structured legal basis. Although immediacy is an attractive factor, carefully analysing the legal and corporate implications will avoid problems in the future.

In this sense, having a detailed knowledge of the process and evaluating all the available options is key to guaranteeing that the choice is the most suitable for the growth and stability of the company.

If you have any questions about this, please do not hesitate to contact us, by calling Núria Martí García or emailing her at nmg@btsasociados.com, or Ignacio Torrentbó Castillo itorrentbo@btsasociados.com, we will be delighted to help.