Business in Spain

The foreigners that move to Spain to start a new life are becoming more and more and the demand for quality products and service in all manner of industries is increasing. That leaves the market wide open for all the people that want to start their own business in Spain. However there are some fundamental issues that must be addressed if you don’t want any problems.

First you must examine the market to make sure the product or service you are going to provide is demandable. Beware that the market in Spain is very different from any other country. If you are an EU citizen and you are convinced of your success you have the right to start a business in Spain.

It’s very important to visit the national police station and apply for an N.I.E. number. This is an identification number that is used by foreigners mainly for tax purpose. It’s very simple to take it. Just bring your passport and complete a simple form. The time needed to collect your number is within four weeks.

In Spain, two levels at which a business must be registered: local level and national level. The local level requires registration of your business in the town hall and obtaining an opening license (Licencia de Apertura in Spanish) which will define your business and the way of trading. For national level you have to register with the IVA office which is the same as the Inland Revenue office. Your tax will be collected by the Agencia Tributaria. The next think to do is to decide the format of your business. An expert advice as to which type best suits your business is required.

Empresa Individual
This is the same as a sole trader. The business is being run in one persons name only.

Sociedad Civil
This is a partnership where sever individuals are coming together to form a business.

Sociedad Limitada
This is a limited company with shareholders and a set minimum capital for trading in the bank.

Sociedad Anonima
This is a bigger company with large minimum capital. This type of company also has shareholders.

Other important thing is the Social Security payments. A company that is employing people must pay social security to them.