Are you a foreigner and want to start a business in Spain? Do you have an innovative idea and want to start a business in Spain but are afraid of your residency? This guide will help with all your doubts.
The current agreements between the member countries of the EU and the territories in the European Economic Area, establish that any EU citizen has the right to create their own company (even as a sole proprietor). It is also allowed to create a branch of an already established company officially registered in the EU. Of course, you must comply with a series of requirements and follow the necessary procedures to be able to operate legally.
1. Requirements for a foreigner to open a business in Spain
A foreigner who wants to create his or her business in Spain must meet the following requirements:
Reside in Spain legally
Age 18 and above
The company has the capacity to create jobs and has an economic interest in Spain.
Have no criminal record in Spain or any other country that he or she has resided in the last five years
Was never listed as ¨rejected¨ in Spain or other EU countries
Prove that you have sufficient resources for the maintenance, as well as having the necessary investment to start operating.
Have the required training and experience necessary for the project.
Comply with current regulations of the necessary opening requirements, depending on the type of business.
Have public insurance or private health insurance arranged with an insurance company authorized to operate in Spain:
Adeslas Expat Insurance (health insurance) is the first health insurance in Spain that meets both visa, residence, and residency renewal requirements. In Spain, it ranks as the best, safest, and has the highest satisfaction. We are an insurance company that speaks English, along with many other languages.
When setting up a company in our country, it is also important to differentiate between European citizens and those who are not. In this case, in addition to the members of the EU, those belonging to the European Economic Area and Switzerland, Iceland, Norway, or Liechtenstein are also considered to be EU members. All of them can work without more requirements than the previous ones. However, if it is going to be for a period of more than three months, it is also necessary to register in the Central Registry of Foreigners at the Immigration Office or a Police Station.
The registration of foreigners in self-employed grows five times faster than that of Spaniards. For their part, non-EU foreigners must apply for an entrepreneur visa/self-employed visa and then change it to a residence permit for entrepreneurs.
2. Steps to create a company in Spain being from another country
After meeting all the requirements, it is time to start the project. To do this, you must present the following documents translated into Spanish at the corresponding Consular Office and carry out the following procedures.
It is necessary to have an interest report on entrepreneurial activity and a business plan to prove the benefits the project can offer to the Spanish economy. This information is crucial for the approbation.
Get an NIE card (using an entrepreneur visa or self-employed visa)
Select 3 names of the company, and send them to the corporate register of Spain (Registro Mercantil) to get the certificate of uniqueness
Open a bank account in Spain with no less than 3000€ in cash or assets (such as a computer or phone) valued the same as the constitution of the firm. The contribution of this amount of money generates a bank certificate that demonstrates the payment.
Establish the shareholders (at least 1 person, the director with corporate and working functions altogether) and create the shareholder agreement (definition of each shareholder and the shared percent)
Go to the notary with all the documents mentioned above and sign the public deed of incorporation, where it´s necessary to clearly define the activity of the company. The notary will give a provisional VAT number right away for the company to start the activity. It will also register the company in the company registry, which may take about 3 weeks.
When you have the deed from the notary, you should go to the Spanish Tax Agency (Agencia Tributaria) to get the deed stamped by this organization
Also with the Spanish Tax Agency (Agencia Tributaria), you will need to request the company´s CIF:
First of all, you need to downloadthe corresponding application form from the Spanish tax agency’s website
Then, you complete that form
You need to get an appointment with your local tax agency office to present it, along with your NIE.
If you want to import/export within the EU, you will also need an EORI number. Usually, it is assigned automatically when you register the company. But if not, you will have to apply for it.
Visit your local social security office and register your business
Then you are ready to hit the market with your very own business!
3. A reminder from Adeslas
For a newly founded business, there is usually a lot more to care about, especially the risks involved. These can include property damage, robbery, or even in extreme cases: (fire or explosion). However, with the Adeslas business insurance, we will get you covered completely. You only need to worry about your own business, and we will take care of the rest!
Check out this blog if you are curious about income tax: