How to create a company in Spain?
There is the freedom to do business in Spain, with few restrictions for individuals seeking to start businesses. There is no discrimination against local citizens or foreigners. One can set up a business in Spain after carefully meeting the legal requirements.
Every business owner goes through the same rigorous legal process of obtaining a permit. It is easier to rely on a notary in Spain, known as Notario in Spanish, to help guide you through the legal part of setting up a business in Spain. Here is how to create a company in Spain.
Key information to know how to create a company in Spain:
Now we’ll see the work permit you need and the most frequent business forms in Spain. This is the basic information you need to know before launching any company in Spain.
Get the right Work Permit depending on the business you’ll create
The choice of the work permit depends on the complexity and type of business you intend to set up.
Entrepreneur Visa
The entrepreneur visa is for people intending to start companies and businesses based on technology and innovative ideas. Residency to operate such businesses is advantageous. However, there are rigorous legal requirements to fulfil before being granted.
Self-Employed Worker Visa
The self-employed worker visa is given to non-innovative businesses like cafeterias, supermarkets and stores. However, there are strict considerations given before a permit is issued.
Usually, the Notario does not participate in the visa application process. But if you choose JLA Notarios, to assist you in the creation of the company, we’d recommend a reliable professional to help you fulfilling the requirements to get any of the entrepreneur or Self-Employed Worker Visa permit.
How To Operate A Company In Spain
There are three primary business forms in Spain to help business owners work efficiently. Each form presents different opportunities to build businesses.
1. Sole Traders
This is Spain’s most straightforward and cheapest way to operate a business. It allows the business owner to decide what services and experiences to offer the customers. The business owner has the freedom to make their own rules. A sole trader business involves the following steps:
– Registering With The Spanish Tax Office
Before setting up your company in Spain, you must register for tax with the Spanish tax office. This is done by physically visiting the tax offices accompanied by the necessary required documents like the NIE and a valid passport.
The process requires precision. Therefore, getting help from notaries Barcelona, like JLA Notarios, wide a highly trained team, at the initial application stages is wise to avoid mistakes. We will do lots of the actuations needed for you but you will also need a fiscal accountant after the creation of the company that will do the tax declarations in your name. We can give you some contact of a skilled accountant.
– Get A Social Security Number
After successfully registering with the tax authority, getting your social security number is the following requirement. Having the proper documents makes the application process simple. This service can be done by the best notaries in Barcelona and we do it.
– Acquiring A Business License
The business license is for regulated professions only.
2. Partnership
This is for individuals who want to get into business with a team, either one or more. However, the process can be expensive and time-consuming. Generally, there are two types of partnerships, each with different special requirements. Get involved with a notary in Barcelona like JLA Notarios, for a deeper understanding of the rights and responsibilities of each.
- General partnership
- Limited partnership
3. Limited Liability Company
A limited liability company (or Sociedad Limitada in Spanish) is the most formal, expensive and complex to set up and run. However, there are plenty of advantages associated with it compared to the other forms. The law also binds some specific businesses to run as limited companies.
Spain has six limited company types, differing by the minimum investment amount and minimum shareholder numbers needed.
Creating a company in Spain is not difficult, but….
The process of how to create a company in Spain can be complicated. This may require you to consult a professional that understands the Spanish laws and regulations for a seamless application process and initial running guidance.
We highly recommend to consult professionals that understand the Spanish laws and regulations to avoid any legal problem. Do not hesitate to contact JLA Notarios, where you will find a team with highly trained professionals who can advise you whenever you need it, we offer different notary services related to business creation and legal support. We’ll be please to help you, our office is located in Barcelona and you can reach us through the contact form, by phone, email and even WhatsApp!
