Spain is an ideal landscape for business that encourages entrepreneurs across the globe to start their businesses in the territory. The country is strategically located and has access to various markets including Europe, North Africa and Middle East. With the great infrastructure, entrepreneurial ecosystem, and talented ecosystem, Spanish is an attractive place to kick of your business venture. However, starting a new venture in a new country has sets of challenges and uncertainties. Starting a business in Spain requires you to follow certain steps in order to have a hassle-free experience and run your company successfully. This article is a guide to help you learn how to start a business in Spain as a foreigner.
Get NIF Number
After establishing your business idea and structure, you must get NIF number (Spanish tax code) for yourself. This is the identification number that allows you to operate legally in Spain, as it helps you to open a bank account and be tax-identified. You cannot freely operate in Spain without NIF number. The process is not that hard, and the time it takes to be processed depends on your citizenship. If you are an EU citizen, the process can be completed between 3 and 5 days. For non-EU citizens, the time varies depending on your immigration office.
Register the Company Name
The next step after getting the NIF number is obtaining a Certificate of Uniqueness. This document shows that your company is under your possession and is permitted to operate. You are required to state three names that you prefer your company to be called, and the corporate register of Spain checks them and approves one. It takes about 48 hours for this process to be completed.
Open a Business Bank Account
Opening a business account in Spain is easy as long as you have NIF number. You are required to deposit at least 3000 Euros, a minimum share capital for Limited Liability Company in Spain. The money is used to generate bank certificate which shows payment.
Create Shareholder Agreement
This is where you decide who will be the shareholders of the company. You must also choose a company director who does not necessarily need to be on your pay slip. You then create a shareholder agreement that shows each shareholder’s percentage.
Register your Company
You need to visit the notary to sign a public deed of incorporation, a process that can take up to three weeks. You also need to define the company’s activities.
Tax registration
As soon as you start a business, you need to pay taxes. Therefore, you are required to visit a Spanish tax agency to register so that you can get your final tax identification number (CIF) for your business.
Social Security Registration
Lastly, you must visit a local social security office to register your new venture. There are different regimes that apply depending on your business structure. You are required to bring all necessary documents, including NIF, with you during this registration.
In conclusion, if you are an entrepreneur planning to expand globally, opening a business in Spain is a good idea. Spanish encourages foreign businesses by making the environment welcoming to entrepreneurs. Additionally, it is strategically located, and accessing other markets is easier. The only thing you should do is follow the above process for your business to start and run smoothly.