How to open a company in Spain
- Thursday May 23rd 2019
There are many different factors to consider when choosing a country to open or expand your company in. First, does the country match the type of company you are trying to open? And do you even already know what type of company you want to open? Also, it is a good idea to check whether or not your company name has already been registered by someone else.
How to open a company in Spain
- Step 1: Decide on a business name, strategy and general area you want to open your company in;
- Step 2: Find a suitable office space, who your local competitors are and what taxes will be relevant to your company;
- Step 3: Apply for permits and ensure that you and your colleagues/employees are allowed to work in Spain;
- Step 4: Get a trade registration;
- Step 5: Immerse yourself in the local culture and perhaps brush up on your Spanish skills;
- Step 6: Summarise everything on a checklist and use this to keep a clear overview of things.
For your company to be successful, it is really important to be well prepared and ready to face any difficulties that you might encounter along the way. That is why we have written this article, in which you can find all the important information you need to know before opening your company in Spain.
It is probably best known for its sprawling empire which covered even the far corners of the world
Opening your company in Spain
In case you decide to open a company in Spain, there are several legal forms you can choose from. The first legal form is sole proprietorship, with this form you do not need any capital to start. You should keep in mind that your liability for debts is unlimited, and therefore you will be personally liable for any business debts you might incur. Another option to choose from is the stock corporation, which has a minimum share capital of € 60,101. The shareholders are not personally liable for the business’ debts.
Another form is the limited liability company, which is ideal for small or medium-sized businesses. The minimum share capital needed to start a limited liability company is € 3,005. This makes it a lot easier to gather the capital, which is also an advantage for small and medium-sized companies.
You can also choose to start a joint venture, this joint venture can be temporary in nature or permanent. An example of a time-limited venture is a temporary business association, which is created to carry out specific projects for a limited amount of time. You could also open up a branch. This is is an organisation which depends on its parent company, which is located in another country. It has the same legal form as its parent company and performs similar activities.
It is good to inform yourself about all the rules, regulations and relevant taxes
After carefully considering all the possibilities and weighing out the pros and cons, you might very well decide to open a company in Spain. After you have chosen Spain as your country of choice, you can start planning the opening of your company. It is good to inform yourself about all the rules, regulations and relevant taxes you will have to deal with before being able to open your company. It might be a good idea to start looking for possible office locations as well, there is a big difference between the various cities in Spain and even within the city itself there are several districts to choose from.
You could also look into creating a checklist to maintain a good overview of what you have already done and what you still need to take care of. This checklist could contain things such as finding a notary office to help you draft articles of association or inform yourself about the rules and regulations in Spain. Also, opening a bank account with a local bank could be a good idea to make sure that it is easier to do business with potential partners within the country. Furthermore, it is wise to look into finding a tax advisor who will help you get familiar with the Spanish tax system.
Finding office space in the right city
With Spain being in the south of Europe, bordered by France, the North Sea and most importantly, the Mediterranean sea, it is a popular travel destination for millions of people every year. According to the Spanish government, in 2018 alone over 82 million tourists visited Spain. Due to its natural splendour and a wide range of cultural attractions, you will certainly find plenty of possibilities to entertain yourself during your leisure time. Warm, friendly and open, is what the Spanish people are known for and this attitude creates benefits for your company as well.
Finding an office space in Barcelona, Madrid and other Spanish cities is made easy by using our office space comparison website. Completely free of charge and without any obligations, it is the easiest way to find the perfect office space for your company. With Barcelona and Madrid respectively having 1.6 and 3.1 million inhabitants, there is a lot of demand for all kinds of offices, including traditional offices, flex offices, business centres and individual workspaces. With SKEPP you will find a suitable office space in no time, while also assisting you with free advice on how to open your company in Spain.
Madrid, being the capital of Spain and also the biggest city in the country, is a popular destination for international companies and a good choice to find office space in. Accenture and IBM already have offices here. Madrid is the European Union's third largest metropolitan area and the country's largest metropolitan area. The city holds the government headquarters, as well as the King of Spain's official residence and the prime minister. Madrid is Europe's fourth richest city, 31.8 per cent of the country's companies have decided to set up their headquarters here.
Large companies such as Amazon, Accenture and IBM already have offices here
Looking for an office in the heart of the city? Then we advise Madrid Centro and in case you are looking for a business centre, have a look at the Paseo La Castellana district, where there are plenty of business, banking and financial buildings. Another great choice is the Salamanca area of Madrid. With more than 150,000 inhabitants and close proximity to the city's historic centre, Madrid Salamanca could be a good choice for opening up your business in. The district started evolving in the late 1850s and has maintained much of its historical character.
As mentioned before, Barcelona is the second-biggest city in Spain. Aside from being the second-biggest city, it is, like Madrid, a popular destination for international companies to settle their office in as well. Important multinationals, such as Casio, Yahoo, FedEx have established an office in Barcelona and this city might contain your dream office as well! One of the city’s districts recommended by us is Barcelona Eixample. A district of Barcelona which is located between the old city and what and what were once small towns surrounding the city. It has many beautiful buildings and a large variety of available office spaces.
Perhaps you are not sure whether Spain is the right country for you?
Are you still considering other options? Spain is part of the European Union and as such, it does not have a hard border with other countries within the Schengen area. But not to worry! If you do decide to change your mind, SKEPP is still here to help you. Operating in many different European countries, such as France, Austria, Germany, the Netherlands, Poland and Switzerland, we have written articles on how to open companies in a few of these countries which could be interesting to read as well.
Also check out our articles from this series:
- How to open a company in the Netherlands;
- How to open a company in Germany;
- How to open a company in Switzerland.
- How to open a company in Poland
- How to open a company in Belgium
In case you have any questions about how to open your company in Spain, we are happy to help! Contact us today on +31 85 888 2339 or by sending an email to firstname.lastname@example.org. If you contact us through either of these ways, if we are not able to get back to you immediately, we strive to give you an answer within one business day. Of course, any advice or help given by us is entirely free of charge. We hope this article gave a good overview of what you need to take into account in order to open a company in Spain.