Spain attracts entrepreneurs from all over the world with its favorable climate, culture and economic potential. If you are considering starting a business in this country, you should know the main steps of the process.
1. Market Research
Defining a Niche: Before starting a business, determine what industry you would like to work in. For example, tourism can be profitable in regions with high tourist traffic, while the restaurant business may require a deep understanding of local cuisine and culture.
Market and Competitor Analysis: Research market needs, identify key competitors, and determine what you can offer better or differently. For example, if the cafe market in a certain area is oversaturated, you might want to consider opening a specialty coffee shop or tea shop.
2. Creating a business plan
Strategy and Goals: Determine how you are going to achieve your business goals. For example, if your goal is to open a chain of stores, start with one successful location and then expand.
Start-up capital and expenses: Estimate how much money you will need to start and what your monthly expenses will be. For example, renting a room in the center of Barcelona will cost much more than in a small town in the outback.
3. Choosing a legal form
Determine which activity format suits you: work as an independent entrepreneur or create a company. For example, a self-employed business may be suitable for freelancers, while a trading business may be better off setting up a legal entity.
4. Registration of company name
Before registering a company, make sure that the name you choose is unique. For example, the name “La Rosita” may already be taken by a restaurant in Madrid, so it is worth considering alternatives.
5. Obtaining a NIE (Número de Identificación de Extranjero)
This identification number is required for foreign citizens wishing to conduct business in Spain. For example, without a NIE you will not be able to open a bank account or register a company.
6. Opening a bank account
To register a company, you will need a local bank account. For example, Banco Santander or BBVA may offer specialized services for business clients.
7. Company registration
Once all the documents are ready, you can register your company in the trade register. For example, to register an SL (Sociedad Limitada) you will need constituent documents and a minimum authorized capital.
8. Obtaining licenses
Depending on your business, you may need different licenses. For example, to open a restaurant you will need a sanitary license, and for a travel company – a license for tour operator activities.
9. Hiring
If you plan to hire employees, make sure that you formalize their employment relationships in accordance with the law. For example, a worker may be hired on a full-time, part-time, or temporary basis.
10. Taxes and accounting
Keep track of your income and expenses, and keep an eye on the tax calendar so you don’t miss tax deadlines. For example, VAT in Spain must be paid every quarter.
Important recommendations
Periodic Legal Review: Laws and regulations may change, so consult with an attorney or accountant regularly.
Working with Professionals: Consider working with an attorney and an accountant to ensure the business is being handled correctly.
Need help? Contact us!
If you have any difficulties or questions at any stage of opening a business in Spain, our company is ready to help. Book a consultation and our experts will provide you with all the information and support you need.
