Why Set Up Business in Spain?
Besides boasting the rich culture, good quality of life, access to talented professionals and technology, Spain has numerous other attractions to draw new businesses there.
Among the booming sectors for potential businessmen to consider include are technology, mobile devices, renewable energy and energy efficiency, biotechnology. Also, as a member of the European Union, Spain has direct access to the EU markets and is geographically close to North African and Middle Eastern markets. Its area of influence includes the Latin America countries, with which it has the most treaties to avoid double taxation.
Setting up a business or investing in Spain is not hard. However, to do it right and avoid any problems that may arise in the future, you will need the appropriate legal, tax and employment advice.
Though Spain does not impose any specific requirements on foreigners wishing to establish a business presence in the country, there are certain factors that need to be considered. These include the type of business you are considering, the existence of any trade agreements or relationships and of course the location.
The location is particularly important as separate cities and regions may have different rules, costs and availability. Regional language may be any factor, as though Spanish is the national language, different locations in Spain may use different languages.
Establishing your business in Spain
The first step towards establishing your business in Spain would be to obtain a certification of uniqueness of proposed company name from the Central Commercial Registry. Once the Registry issues a certification for the requested corporate name, it will be reserved for a maximum of 6 months from the certification’s date of issuance. Next, you will be required to open a company bank account, deposit your capital and obtain a deposit certificate. Once the deposit is done, the bank issues the relevant certificate evidencing the deposit has been made.
Overall, there are basically four types of business forms available to foreign companies in Spain – corporation; branch office; representative office or joint venture. Each has distinct advantages and disadvantages, as well as differing scope of business activities, registration requirements and minimum capital requirements.
In most cases it will depend on the degree of commitment a company has to Spain and the planned business activity. You will also need certain licenses and permits from your respective municipal and regional governments.
Certain licenses may be required if you intend to build, renovate or demolish anything (interior or exterior) where you want to conduct your business. Depending on what your proposed business is, other types of licenses may be required as well. Once you’ve successfully chosen a name and a legal structure for your business, it is essential that you create a business plan and obtain the financing you require.
Adequate business financing is key to any business and in Spain, there are several options, which include personal financing, loans – which are available for residents and non-residents.
Grants are also available to new and existing businesses on the municipal, provincial, regional, national and EU level. Grants are commonly available for businesses in certain industries or sectors.
In reality, the technical setting up of a business in Spain (or becoming registered for work) is not difficult and is not something that should ever stand as an obstacle. However, as mentioned earlier, it is best to seek the advice of professionals to ensure a smooth and successful venture.