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Starting a business in Spain as a foreigner? Its important to consider the SPanish incorporation regulations. House of Companies in Spain will walk you through the necessary steps to start a business in this beautiful country, from understanding the legal requirements to getting your company up and running.

Who Can Start a Business in Spain?

Spain is open to entrepreneurs of all nationalities. The country does not differentiate between EU and non-EU citizens when it comes to launching a business. However, to operate a business in Spain, you must first have the right to live and work in the country.

If you’re an EU citizen, the principle of free movement gives you this right automatically. However, you’ll still need to obtain your Número de Identificación de Extranjero (NIE), a unique Spanish tax identification number required for any official process.

Non-EU citizens will also need a valid visa and work permit to run a business in Spain. These can be obtained through the Spanish embassy or consulate in your home country.

Understanding Spanish Legal Entities

In Spain, there are three primary legal forms you can choose for your business:

1. Sole Trader or Autónomo: This is the simplest and most flexible form of business, especially suitable for individuals running a business on their own.
2. Partnership or Sociedad Civil: If you plan to start a business with one or more people, a partnership might be the best option.
3. Limited Company or Sociedad Limitada (SL): This is the most formal and complex business structure, but it offers advantages such as limited liability and more favorable taxation.

Registering Your Business

Once you’ve chosen the legal form for your business, you can start the registration process. This includes several steps:

1. Obtaining the NIE Number: As mentioned earlier, the NIE is the basic identification number any foreigner needs to carry out any legal procedure in Spain. This can be obtained from the Spanish embassy or consulate in your home country.
2. Registering the Company Name: You must request your company’s name at the Spanish Commercial Registry. The registry will grant you a name provided it is not already taken.
3. Opening a Business Bank Account: You must then open a business bank account in Spain, which must contain a capital of at least 3,000€ for setting up a limited liability company.
4. Establishing the Shareholders at the Notary: You will have to visit a notary to designate the company’s shareholders, the official address, the activities the business will carry out, and the company bylaws.
5. Registering the Company: Once you leave the notary, submit your company constitution deed to the Commercial Registry in Spain
6. Registering for Social Security: After registering your company, you must register for social security under the special regime for autonomous workers (RETA).
7. Registration at the Tax Agency: Finally, you must register at the tax agency, allowing you to legally start offering your services or selling your products.

Running Your Business in Spain

Once your business is set up, it’s time to get going. However, running a business involves more than just selling products or services. It involves managing finances, meeting tax obligations, and complying with employment laws if you have employees.

As an entrepreneur, it’s vital to keep track of your income and expenses, submit your tax returns, and ensure you comply with all applicable laws and regulations.

House of Companies: Your Partner in Starting a Business in Spain

Starting a business in a foreign country can be daunting. That’s whereHouse of Companies steps in. With their vision of ‘Globalisation as a Service,’ they aim to make legal processes more understandable and actionable, disrupting traditional consultancy practices.

Whether you’re planning to start a business or expand an existing one, House of Companies provides a self-governance portal that allows you to start a Spanish business without setting up a local entity, all at a fixed yearly fee.

With their services, you can recruit and outplace your staff in Spain without any hassle. They provide an in-depth overview, ensuring that potential clients gain a deeper understanding of the brand’s journey, values, and commitment to empowering entrepreneurs in the international business landscape.

Conclusion

Starting a business in Spain is a promising venture for entrepreneurs looking to expand their global footprint. With the right guidance and resources, you can navigate the legal and business landscape with ease. House of Companies stands ready to assist you every step of the way, providing the support and resources you need to make your business in Spain a success.