Starting a Business in Spain: 7 Steps to Successful Registration

Introduction:

Spain is an attractive location for businesses, whether start-ups or established companies. With a dynamic economy, a strong tourism sector, and growing interest in sustainable investments, the country offers many advantages. In this article, we will guide you through the steps to start a business in Spain and the key considerations you should be aware of.

1. Choose the Right Legal Structure

In Spain, you can choose from several legal structures, such as:

• SL (Sociedad Limitada): Similar to a GmbH in Germany, ideal for small and medium-sized businesses.
• SA (Sociedad Anónima): For larger businesses, comparable to a public limited company.
• Autónomo (Sole Proprietorship): For freelancers or self-employed individuals.

Tip: The SL is the most popular structure for international founders as it offers limited liability.

2. Reserve a Company Name

Your company name must be reserved with the Central Commercial Register (Registro Mercantil Central). Before reserving, check if the name is available and apply for certification online.

3. Open a Bank Account

After reserving the company name, you need to open a business account and deposit the required share capital:

• For an SL: At least 3.000 €.
• For an SA: At least 60.000 €of which 25% must be paid in.

4. Notary Formation and Tax ID (CIF)

A notary will prepare the incorporation deed (Escritura Pública), which includes essential details such as shareholders and management. Afterward, you must apply for a provisional Tax Identification Number (CIF) from the Spanish Tax Authority (Hacienda).

5. Register with the Commercial Register

Once you have obtained the CIF, the company must be registered with the Commercial Register. This is an essential step to officially be able to conduct business.

6. Register with Social Security

If you plan to hire employees, you must register the company with Social Security. As a sole proprietor (Autónomo), you will register directly with the Social Security office (Seguridad Social).

7. Consider Country-Specific Particularities

Spain has some specifics that you should take into account when starting a business:

• Regional Differences: In regions like Catalonia or Andalusia, additional regulations may apply.
• Language: Many authorities communicate only in Spanish, so having a local partner or translator can be very helpful.

Conclusion:

Starting a business in Spain can be challenging, but with proper planning and support, it is a rewarding step. Our team is here to assist you at every stage of the process – contact us for personalized advice!