Starting a Business in Spain

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How to open a business in Spain

People who want to invest in foreign business, are interested in how to open a business in Spain. The matter is complicated, clearance can take a long time, but the result is worth it!
Who has the right to open a business in Spain

Adult citizens, who came from other countries who are in the country legally, regardless of residency can start a business in Spain, having a number of procedures.
Key documents to start a business

First you have to collect a number of documents. In the mandatory list includes:

     Company's charter and memorandum of association in Spain - it Escritura, which is a document which is signed in the presence of a notary.
     NIE - Identification number of the foreigner.
     Extract of opening a personal account in any bank of Spain and the presence on it of funds authorized capital.
     Help from the Register the name of the Spanish companies of the name of the company may use the name of your choice.

In the case of labor contracts, it will be necessary to register with the Ministry of Labor in Spain.
The main types of legal forms Business in Spain

Based on the legislation of the Spanish kingdom, we can conclude that in this country, the business can be conducted independently or through the creation of a legal entity.

In Spain, there are three forms of business registration by an individual. Participants of these organizational forms have unlimited liability, shall pay income tax and do not make any mandatory capital investments.

     Individual entrepreneur (IP) - there is one party.
     A general partnership - must be at least two members.
     Civil society - recorded two or more participants.

In order to become entrepreneurs, the participant must register with the insurance and the tax office.
Organizational and legal form for legal entities

Joint-stock company. The number of shareholders is not limited. Amount of the share capital (CC) - 61,121.21 euros. The first step is to pay 25%. The company can be managed by one or more directors.

A limited liability company in its composition can have any number of shareholders. Criminal Code is 3000 euros. When registering its payment must be made in full. Lead this company may one or more directors, and they can not transfer their shares to a third party.

Unlimited company, within which shall be at least two members. Size of the Criminal Code - is not defined. Made payment of income tax. Members of the company have unlimited liability.

Partnership. Between multiple partners is a contract in which the rights and obligations with respect to management, as well as the conditions under which there is a distribution of profits between them. Participants in this organizational form make payments of income tax.

When starting a small or medium-sized business, please register form a company with limited liability. After all, it is the most simple and less costly.
Difficulties in starting a business in Spain

To start it is necessary to obtain permission from the Ministry of Labor in Spain. To do this, submit documents confirming the work in the company of a person wishing to start a business. It is also necessary to obtain a visa at the embassy in local authorities is necessary to issue a license to open a personal matter.
Pluses of the business in Spain

     Open a business in Spain and can nerizedenty, with easy registration.
     Ability to design a loan at a Spanish bank.
     Tax benefits.
     Opportunity to issue a residence permit in connection with the conduct of the business.
     Support for foreign entrepreneurs by local authorities.

Cons business in Spain

     High price competition.
     If you need foreign professionals, the procedure of their involvement will be very difficult.

Even with the shortcomings, Spain still remains the most alluring region for running your own business.

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The basic steps, tips and practical advice on how to start a business in Spain

In this article, we will focus on how to properly prepare a base for doing business in Spain.
To think seriously about the founding of the enterprise in Spain can be provided that you have:

     Have an idea about the nature of your future business in Spain
     Conducted market research and imagine the level of profitability of your future business
     Possess sufficient experience in your chosen industry
     You or your business partner speak Spanish

 
Foundation for successful business in Spain.


     Select company name and register it
     Select the shape of the enterprise
     Develop a business plan
     Find funding
     Select an office
     Obtain the necessary licenses and permits

 
Select company name

Proper name - this is your first investment in the future success of the company.

You can register your company name in the Register of commercial names (Registro del Nombre Comercial), it gives the owner of the firm exclusive right to use the name as their own brand. In Spain, the company name registration is not mandatory.

Given the registered name of the company is engaged in Industrial Property Registry (Registro de la Propiedad Industrial). When registering a commercial name, you will need proof of payment of tax on economic activities (IAE). Companies can have their own trademarks, or trade names, which may differ from the official name of the company.

 
Select the shape of the enterprise.

Choosing the right form of enterprise - one of the most important strategies for achieving and profits. Form of enterprise in Spain are as follows:

     Individual entrepreneur (Empresario Individual / Autonomo)
     Joint ownership of property (Comunidad de Bienes)
     Partnership (Sociedad Civil)
     Joint-Stock Company (Sociedad Anonima / SA)
     Limited Liability Company (Sociedad de Responsabilidad Limitada, SRL / SL)
     A new enterprise with limited liability (Sociedad Limitada Nueva Empresa)
     Closed Joint Stock Company (labor) (Sociedad Laboral)
      Company with unlimited liability company property (Sociedad Colectiva)
      Limited Liability Company (Sociedad Comanditaria)
     Cooperative (Sociedad Cooperativa)

 
Make a business plan

If you are interested in investment and are at the stage of fundraising, be precise in the preparation of the plan. No need to describe the objectives of the enterprise on eight sheets, your sponsors still will not read it all. However, there are some things to keep in mind:

Language. If you want to find investors in Spain, make a business plan in Spanish.

Help is always available. Free advice on business planning and support entrepreneurs can provide Regional Chamber of Commerce.

What should contain a business plan?

     Business concept. What specifically provides an enterprise as its products or services, what segment of the market will serve your company. The concept should clearly describe what and how it will be sold, as well as what will be a competitive advantage of your company.
     Financial scheme. Consider diagram cash flow in your company miscalculated the amount of sales, profits, and other required payments and the amount of the share capital.
     Financial investments. Need to calculate the capital required for the initiation and promotion of business. It is important to calculate how funds will be used, and from what sources have to make payments. If you take out a loan in Spain, count, take from loan guarantees.
     The internal structure of the firm. Develop the structural organization of the company, a control circuit, who will be the owner or founder miscalculated key positions of staff.
     The advantages of the company. Benefits include patents, an unbeatable location and convenience, whatever your best contacts that will be needed for product development and successful market entry.

 
Search for funding

Appropriate source of funding is the key to the future success of any business, so do not rule out all possibilities, including:

     Financing from own sources - especially true for small companies with a registered capital or for small businesses.
     Credit in Spain.

Loans are available to both residents and non-residents, the loan terms vary depending on the loan amount, loan guarantees, the bank's policies and other factors.

Payment of the loan can be stretched for a term of three years. Payments can be monthly, quarterly or semi-annual. Be sure to specify the conditions in ICO, the Official Credit Institute (Instituto de Credito Oficial) or any major bank or savings bank.

 
Grants, subsidies

Both new and existing businesses in Spain can receive grants at the city, provincial, regional, national and European Union level.

Conditions for Grants may be different, but most grants are industry or sectoral. Through grants and subsidies to encourage the creation of jobs in certain industries or jobs are created for specific social groups.

Information on grants and subsidies you can find in the city, provincial, regional executive bodies or the local Chamber of Commerce. Also look for information on grants and DGPYME (Direccion Generalde Politicade la Pequenay Mediana Empresa) - Directorate General Policies Small and Medium Enterprises, do not forget to also grant the European Union.

 
"Business angels"

If suddenly the bank refuses you a loan, angel investor can come to the rescue! Business angels are private investors who have a personal or financial reasons, are willing to invest in a new or existing business. Business angels, in contrast to the biblical angels, as well as any bank, as a result expect to receive a return on their investment in your business. Advantage of business angels is that they can go on the bolshie financial risks than banks.
More information can be found through the Spanish Network of Business Angels (Red Espanola de Business Angels).

 
"Facility" - an agreement between the firm and the bank for a loan for a specified amount

Credit line for the start-up phase of a loan for unexpected expenses that may arise in addition to Calculate the business plan.

Interest rates on credit lines may be fixed or vary depending on the conditions, the payment is usually carried out during the year. To get a credit line you must have a residence permit for work without a contract in Spain.

 
Find a room

Think about the best ways to access the company to customers, staff and suppliers, and then what services and communications you have to use. Strive to provide, how to position your business in the center or on the periphery, whether you need a space for the locker room, if you will need a storage room whether you need parking for transport for delivery of goods, whether you need proximity to other businesses.

Be sure to check the entire territory of the potential placement company looking for signs "traspaso", "en alquiler", "local disponible".

The site real estate agency "Glariya" can be found offices and residential premises on lease, rent or sale throughout Spain.

For information about renting and purchasing premises for offices can also be found on the official website Chamber of Commerce of Madrid.

 
Get licenses and permits.

For the opening of the company will need permits and licenses from the relevant municipal and regional executive bodies. Updated requirements for obtaining a license can be found in the mayor's office or the government of the autonomous province.

For example, in Madrid you need permission from the city (licencia urbanistica) for the construction, repair or demolition of buildings and premises. Resolution city applies to all capital works, inside and outside the building. The cost of permits varies depending on the amount and nature of the work, as well as floor space. Currently, the cost of the license in the city of Madrid from 50 to 1,500 euros.

License to open an office (licencia de apertura), requires the provision of the floor plan and formal technical design specification of the equipment used and the application of technical documentation for it.

If you purchased the premises for the enterprise, Madrid also required to register the premises in the real estate register. In the Autonomous Province of Madrid, some activities must be separately licensed. This refers to the travel agency, tattoo parlors, service garages.

Depending on the type and structure of your business, you may need other licenses.

Be prepared to pay VAT (Impuesto sobre el Valor Anadido, IVA), the amount of VAT varies between 4 and 16%. VAT schemes are calculated according to the established tax treatment for your type of business. You can check the requirements for your business in the local tax collection agency - Agencia Tributaria or a financial adviser.

Also, for the enterprise will need a visitors' book (Libro de Visita). It is used for audits of labor inspection services and social insurance in case of need.

Once you choose the name and form of the company, developed a business plan, find funding, facilities, and obtained the necessary licenses and permits, you can address the issues of recruitment, creating a website, advertising campaign and promotion of your own blood and the successful Spanish company.
Work Visa in Spain for a sole trader or investor residence permit for work without a contract.

To obtain a visa to do business in Spain, you need assurance that the proceeds of the business will be sufficient for your accommodation with less cost to meet the needs of the enterprise. You will need to provide proof of the Consulate of Spain, that you have the necessary skills to implement the proposed activities in this country.