Living, working and raising a family in a country full of culture, great food and beautiful weather like Spain, sounds like the stuff dreams are made of. Every year many optimistic entrepreneurs enter the competitive and thriving market hoping they will strike gold whilst living the dream of opening a business in Spain.
However, it is best to be prepared for any outcome around the corner to make sure this dream doesn´t come crashing down too soon. In this series of articles, we will plan to give you a comprehensive list of things to consider and do before, during and after setting up your business in Spain.
Research the market
The first thing any budding entrepreneur should do before starting their business is to research the market they want to enter in. Analyzing competition, success rates and importantly location can be vital in giving you a head start and keeping your business afloat in the early stages.
Don´t think that it will be a walk in the park coming to Spain in order to start up your business, as although the Spanish market is attracting many more investors it can be risky if you don´t take all factors into account.
Think everything through beforehand. Make sure you are prepared for the unfortunate circumstance of failure by planning your funds in case you find yourself in some difficulties
Documentation in order
To make sure everything runs smoothly, make sure you have obtained all of the tax documentation in order to start up your business when you get to Spain. The most important piece of documentation is the NIE number (identification number foreigners need for mostly just tax purposes) or your NIF number (tax identification number), which can be completed in a couple of days by visiting the local police station.
What is an NIE/NIF number and why do I need one?
In actuality the NIE number and the NIF are the same thing. This is your personal identification number in Spain, which you need in order to open a bank account, to pay taxes, to buy or sell a property, to be paid legally for working, to apply for a business permit or to register a Spanish company.
Thinking of a name
If you are considering opening a company in Spain, the chances are you will already have thought of a name. The name for your company is of the utmost importance as you will be aware of, however there are some things to consider before making this often very difficult decision.
In Spain in order to choose the name of your company, you will firstly have to write a list of 5 names. You must then submit this list to the Spanish Companies Register which will check if these names are available. It usually takes three or four days for the Spanish administration to reply. If it happens that none of those names are available, you will have to change the names you have previously selected or write a new list that you will submit back to the Spanish Companies Register.
It can often take a lot of time to research all of the possibilities to make sure you are not choosing a duplicate name, so it is recommended you get some assistance from an English speaking lawyer who will do all of this research for you.
Once this step has been completed you will receive a certification of your company name in Spain and you will be ready to carry on with the next steps to set up your company.
This concludes the first post dedicated to helping you when setting up your business in Spain. The next articles will focus on what to do next including the capital you will need, the next steps to take and the people you need to talk to.