Opening a Business in SpainUpdated on Monday 18th April 2016
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Foreign investors from EU countries have the benefits of simpler company incorporation procedures in Spain, while foreign enterprisers from countries outside the EU are required to fulfill additional requirements. Nevertheless, Spain welcomes and treats all foreign investors as local ones.
Why open a business in Spain?
Spain the second largest recipient of foreign direct investment and the third largest investors in the EU, according to a report released by the United National Conference on Trade and Development in 2015. With several sectors such as tourism, renewable energy and research developing at a fast rate and with a pro-business legislation, Spain promises to become one of the most developed industries in the EU. Among the best reasons to open a business in Spain, many foreign enterprisers have mentioned flexibility and the adaptability of the Government. Among the benefits foreign investors can take advantage of if setting up a company in Spain are:
- - various tax benefits,
- - preferential access to corporate loans,
- - professional trainings;
- - governmental grants.
Our Spanish lawyers can provide you with more information about the current programs developed be the government.
We invite you to watch a short video on opening a Spanish business:
What are the main steps for setting up a business in Spain?
Once the foreign investor has chosen the type of entity they will set up in Spain, the next step will be deciding the company’s name and preparing the incorporation documents. First, they must verify the authenticity of the company’s trade name with the Spanish Commercial Register, which may take up to 2 days. The certificate issued by this entity is valid for three months; that means the registration must be done within this period of time. Certificates can only be renewed once.
After this procedure is done, the founders of the company should open a bank account where they will deposit the share capital and obtain a proof from the bank. The documents necessary for the registration must be notarized and then submitted to the local Trade Register in the town where the company will have the registered address.
Hiring employees in Spain
After the incorporation, the Trade Register will issue a registration certificate and the incorporation will be published in the official gazette of the Trade Register and the company can begin its economic activity and hire employees.
All the employees must be registered with the local entities that are in charge with the social security, employment and fiscal issues.
Incorporation through a power of attorney
The foreign investors who want to open a business in Spain can give the power of attorney to a local Spanish lawyer who will handle the entire procedure of incorporation. Foreigners don’t have to go in person to Spain and wait for the incorporation. Local authorities offer various sets of incentives in order to encourage foreign investments.
The business registration procedure can take as long as several weeks as it is related to the type of company. If the registration application is filed online the incorporation is simpler and it will last less.
For details about the business incorporation process, you may contact our law firm in Spain. Our Spanish lawyers can also assist you in choosing the right type of business structure.