Spain is one of the economic power in Europe with a GDP of $1.3 trillion, a population of 46 million, and the fourth-largest economy in the Eurozone. After the effects of the financial crisis that slowed growth in the country from 2008 to 2014, Spain was once again gaining access to affordable external funding from international markets. This will create more interest for investors.
In terms of solubility and reliability, Spain is in the strongest position in years. The introduction of a broader set of domestic structural reforms has increased labour flexibility and spurred new business growth. If you are a business owner then it is important to concern. And it’s a more attractive environment to run a global business.
Reasons for doing business in Spain:
Strategic location and trade cooperation:
Spain has a strong strategic location and deep commercial partnerships. It has access to markets in the EMEA (Europe, Middle East, and North Africa) region, as well as its relationship and trade links with Latin America. It is also one of the members of the European Union (EU), which also offers preferential access to a large common market.
Open to FDI:
Spain welcomes foreign direct investment and plays an important role in US-Spain economic relations. The Spanish government has taken a free-trade and investment-boosting stance by easing business regulations and increasing incentives to attract foreign business and investment at all levels.
Spain’s infrastructure has also been rapidly modernized over the past few decades. The country also has a strong maritime economy. With the evolution of technology, it is easy to Access a complete guide on how to start your company here. There are 46 state ports on both coasts of Spain and it has three of the top ten container ports in Europe.
Step by step instructions to start a business in Spain as being a foreigner:
Business in Spain for foreigners is quite beneficial considering the country’s advantages compared to other European countries. Respecting the core business rules is important for those starting their business in Spain as a foreigner. The support from the Spanish incorporation representative will prove to be very helpful right from the start.
Step One: Choose an Industry to Present Your Business
The first step to take if you want to start a business in Spain is to choose the industry and type of business you want to do.
Step Two: Choose a Compelling Name for Your Business
The next step in starting a business in Spain and the truth is when it comes to choosing your business name. You should be creative because whatever name you choose for your business will give you a good idea of what your business has to offer.
Step Three: Register your business name with Registro Mercantil Central (RMC)
The next step to take after choosing a name for your business is registering the business name. You will need an unnamed coincidence certificate from The Mercantile Registry to verify that the company name you wish to use is available.
Step Four: Select the Business Structure for Your Business
Spain has two basic options that you can choose from if you are looking to structure your business to build your business. Most importantly, you should choose a business structure that best meets your overall business vision and mission.
Step Five: Apply for a Tax Identification Number
The next steps to take after you have legalized your business name for your actual Taxpayer Identification Number (TIN). It is illegal to conduct business in Spain without a tax identification number. And there are two types of tax identification numbers. One is for individuals and the other is for companies/businesses.
Step Six: Open a Company Account or Business Bank Account
The next step to take after you have received your CIF (certificado de identification), your tax ID, and an anonymous certificate is to open a corporate or business account in the Spanish bank and to make the minimum deposit €3,000.
Step Seven: Apply for a Title Deed
The next step to do is to apply for a deed so that you can incorporate your company. The Deed of Institution (DoF) is a document like Official details of the company (name, address, details of directors Board members, shareholders, etc.)
Step Eight: Consolidate the Company
You will need to use the original deed provided by the attorney. You should then go to your local government’s tax authority to register the deed. Please note that you will need original documents and copies of your deed and NIE and the entire process should not take more than two hours.
Step Nine: Register for Social Security
In Spain, to register for social security you will need to complete the Company Registration NIE, CIF, and TA Form 0521 and can obtain these documents from your local Social Security office.
Step Ten: Raise Capital for the Business
This may be in the form of cash to a bank account which is suspended until a Spanish Limited Company (Sociedad Limitada (SL)) is fully registered and functional or in the form of “aportacion no dinerario”, which may include items such as computers, office furniture, or vehicles.
Step Eleven: Find the perfect location to set up your business
Alicante, Valencia, Seville, Granada, Madrid, Barcelona, and Bilbao are popular destinations when it comes to business-friendly cities in Spain. And it will pay you to any city if you are an immigrant businessman looking for a starting point business in Spain and explore enjoyable growth. The truth is that your choice of location to set up a business in Spain must meet certain requirements; otherwise, you will not receive the required approval.
Step Twelve: Open the Door and Start welcoming customers.
If you can complete steps one through eleven and it shows that you are truly ready to start a business in Spain. You can’t generate sales from your products or services if you don’t open the door to your business. The last step to take when starting a business in Spain is to ensure that you open the door to the business.
Finally, it is important to note that this article covers only the basic steps of starting a business in Spain. But other legal and accounting requirements are not covered in this article. It is also an important step in starting a business in Spain.