Do you want to establish your own company in Spain but don’t know how to do it? Are you unsure of the requirements to fulfill in order to create your company in Spain? In this article, we provide you with a detailed guide on how to set up a company in Spain as a foreigner.
Can a foreigner create a company in Spain?
The reality is that anyone can open a business or establish a company, as long as you legally reside in the country. There are two cases for creating a company, which are as follows:
- If you are a citizen of the European Union, it is easier to establish a company, as you only need to have the NIE (Foreigner Identification Number) and the certificate of registration of the European Union.
- If you are not a citizen of the European Union, you will need to have a work visa to be able to work in your company.
What visa do I need to create a company in Spain as a foreigner?
As mentioned earlier, if you are not a citizen of the European Union, you need to have a work permit to create your company in Spain. There are two types of work visas with which you can create your company in Spain: the Entrepreneur Visa and the Self-Employed Work Permit.
Entrepreneur Visa in Spain
The entrepreneur visa is suitable if your business idea is innovative and requires a high level of technology. However, you should know that not all projects are successful, so you will have to present a business plan that is perfectly detailed. You must also demonstrate that you have the appropriate knowledge and skills to develop and work on that project, and finally, you must prove that you have sufficient financial resources to develop the project.
Self-Employed Work Permit
This permit is suitable if you plan to open a business that already exists, such as a hair salon or a restaurant. We say that this permit is suitable if you want to open this type of business because, being a non-innovative idea, with this residence permit, you can carry out the activity without any problem.
As mentioned earlier, to obtain this residence permit, you will also need to present a good business plan, as not all business ideas are valid to obtain this permit.
Requirements for Starting a Business in Spain as a Foreigner
In this section, we will explain the necessary requirements for starting a business in Spain as a foreigner.
Obtain the NIE
The first thing you need is the NIE (Foreigner Identification Number), as it is a identification number with which you can, among other things, open a bank account. The time it takes to obtain it depends on whether you are a citizen of the European Union or not. You have two ways to obtain the NIE:
- From your country of origin
- While you are in Spain
Choose the Name of the Company
The second thing you need to do is register the name of your company. To do this, you must prepare a list with possible names for your company. Once you have finished it, you must send it to the Mercantile Registry to verify that the name is available and no one has used it for their business.
Open a Bank Account for the Company
Once you have obtained the NIE and the name of the company, the next step is to create a bank account for the company. The initial amount you deposit into the account will depend on the type of company you choose. What do we mean by this? If you have chosen a Limited Liability Company (S.L.), the account must have an opening balance of €3,000, and if it is a Public Limited Company (S.A.), the account must have an opening balance of €60,000.
The Partners
In this section, you will need to define the structure of your company:
- Company director
- Names of the shareholders
- Company address
- Business activity your company will undertake
You will need to do this before a notary and also present a bank account statement.
Register the Company in the Mercantile Registry
Once the previous step is completed, you will receive a deed of incorporation. This deed must be submitted to the Mercantile Registry for your company to be registered in the official records.
Obtain the CIF
When you register your company in the Mercantile Registry, you will obtain the CIF, which is the tax identification number of the company, allowing you to carry out commercial activities.
Register the Company with Social Security
The last requirement you will need to fulfill is registering your company with Social Security. Once you register the company with Social Security, you will obtain the Social Security Contribution Code (CCC), which you can use to register and enroll the workers you hire with Social Security.
Conclusion
Setting up a company in Spain can be straightforward, but it’s essential to have a good understanding of the laws and the required documents. Therefore, we recommend that you contact an experienced lawyer to assist you with these documents.
Frequently Asked Questions
What are the most common legal forms for establishing a company in Spain?
The most common legal forms are the Limited Liability Company (SL) and the Public Limited Company (SA). The choice depends on various factors such as the amount of capital to invest, legal liability, and the structure of the company.
How does immigration status affect setting up a business in Spain?
Immigration status is crucial. It’s essential to have a valid NIE (Foreigner Identification Number) and to be in a regular situation in Spain. Some individuals may initiate business activities with a specific visa for entrepreneurs.
What procedures and documents are necessary to register a company in Spain?
The drafting of the company’s bylaws, obtaining the NIF (Tax Identification Number), registration in the Mercantile Registry, and other specific procedures depending on the chosen legal form will be required.
Are there any tax incentives or grants available for foreign entrepreneurs in Spain?
Yes, there are some tax incentives and grants available for entrepreneurs in Spain, which may vary depending on the region and the type of business activity. It is advisable to consult with a tax advisor.
What legal advice would you give to a foreigner wishing to start a business in Spain?
I recommend seeking specialized legal advice from the outset, ensuring compliance with all immigration requirements, understanding tax and labor regulations, and considering hiring a manager to facilitate administrative procedures.
Marta Palacios Cuesta is the founder and principal consultant of Es Abogado Extranjería, a law firm specializing in immigration law in Madrid and Seville. With an impressive academic background, Marta offers expert advice on immigration procedures, residency processes and obtaining Spanish nationality. Committed to providing personalized and up-to-date solutions, her firm stands out for its detailed and professional approach. If you need legal guidance regarding your status in Spain, contact Marta for a personalized consultation at Es Abogado Extranjería.