Register your Business in Spain

One of the great obstacles to entrepreneurship in Spain has always been the high bureaucratic burden necessary to create a company. As has been repeated a thousand and one times in the media, founding a company in Spain requires a significant effort of time and money (even up to weeks, depending on the type of business we want to establish) compared to the few hours it takes to lift an organization in countries like the United Kingdom and, even, Estonia.

The extreme complexity of the business system in Spain, with different legal formulas and different regimes depending on the Autonomous Community or the type of activity, has not contributed to make this type of procedures accessible to ordinary mortals who have had, in Some time, an entrepreneurial vocation. It is not surprising, therefore, that a large number of these people have ended up hiring the services of an independent manager or consultant to help them lay the legal foundations of their company.

Of course, the best way to do it is to go to a consultancy.

In fact, many foreign citizens choose to hire the services of an agency that handles all these procedures for Set Up Business in Spain for them, going only to the signing of each of the necessary documents (essentially, the signature before a notary public of public deeds). This will save money, but above all, a lot.

However, if the desire is to do the procedures yourself, there are a series of steps that you must complete to Set Up Business in Spain. Always remember that these procedures vary between the different regions of our country and there are numerous exceptions to the general procedure that you should know before getting involved in this process.

Decide the ideal legal form

The first step before embarking on the journey by the different administrations to the position is to conveniently analyze all the legal forms that exist in our country to Set Up Business in Spain until we find the one that best fits with our objectives or that provides us with greater advantages. fiscal. We must remember that each model requires different levels of social capital or number of partners, as well as different levels of legal responsibility and on the capital or debts of the future organization. The way we choose will also depend, in part, on the administrative path that we will have to carry out for its discharge.

In this sense, the two most common formulas for Set Up Business in Spain are the Limited Companies and the Autonomous Companies. Both share a limited responsibility for what happens in the company (we will not have to respond with our capital in case of bankruptcy of the organization, unless some type of crime is proven on our part, unlike the self-employed) but they vary considerably in the capital needed to create it (60,000 euros versus 3,000).

Procedures everywhere

Once the ideal legal formula for Set Up Business in Spain has been decided, it is time to get down to work to complete the various documents that will be required for the company to have full legal validity:

Central Mercantile Registry: The first thing of everything will be to register the denomination of our business in this organism; a procedure that luckily can be done telematically or by mail.

Social statutes and public deed of the company: Before a notary, we must present the public deed by which our company is constituted, signed by all the partners.

First taxes: After giving light to the public deed of our society we will have to face the first fiscal charges of the newly created company. This is, in particular, the Transfer Tax and Documented Legal Acts in the form of Corporate Transactions, to be paid at the settlement office of each Autonomous Community. It is a procedure that, fortunately, has zero cost since 2010.

Request a provisional NIF in the Treasury: The former known as CIF, now reunified in the NIF, is the fiscal number that will allow us to identify our company in invoices and other documents subject to inspection.

Mercantile Registry: This is the last step of the corporate creation, the registration of our company in the Commercial Register of our province. For this, they will ask us for the deed of the company, the provisional NIF certificate and the proof of having processed the corporate operations tax.

Application for municipal licenses: Depending on the type of business that we want to conform, it is very possible that we need an authorization from the corresponding City Council; especially in those businesses that are regulated by geographical reasons or competition (such as regulated hours), where physical spaces are used with specific ratings (stores), in addition to those considered sensitive from a health point of view (bars, restaurants, medical consultations) , etc.).

Registration in Social Security: In the event that the company already has employees on payroll, the company must proceed to its registration in the Social Security, in the corresponding sections and subject to the agreement that is appropriate for the functions to be performed.

More information: https://www.setupcompanyinspain.com/