10 easy steps to register your business in Spain in 2024-25

In this article, you will learn about 10 easy steps to register your business in Spain in 2024-25. Read the following steps to register your business or you can contact our experts for the same.

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    register your company in Spain

    Registering a business in Spain involves several critical steps, particularly for foreign citizens. The process, while thorough, is designed to ensure that businesses comply with Spanish regulations and contribute to the economy. This guide will outline each necessary step in detail, providing a clear path for entrepreneurs looking to establish their presence in Spain.

    10 Easy Steps to Register your Business in Spain

    Research and Planning

    Before registering a business in Spain, you need to conduct a thorough research and planning. You have to understand the Spanish market, target audience and competitions. Next, you need to prepare a business plan in which you have to mention your business objectives, strategies, and financial projections.

    Choose a business structure

    Spain provides different types of business structures according to your business niche. Some of the business structures are sole proprietorship, partnership, and limited liability company (Sociedad Limitada or SL). Limited liability company (Sociedad Limitada or SL) is the famous business structure chosen by the entrepreneurs due to its benefits. Every business structure has its own advantages, disadvantages, legal and financial implications.

    Choose and verify the business name

    Make sure the desired business name you choose must be unique and verified. You can verify your chosen business name with the Spanish Commercial Code (Código de Comercio) to avoid conflicts with existing businesses.

    Draft Article of Association (AOA)

    You need to prepare an article of association (AOA) of your company which includes the company’s name, registered office address, share capital and share distribution, rights and duties of a shareholder and responsibilities of a management board.

    Register your business with Spanish Commercial Registry

    After preparing an article of association, you need to register your business with the Spanish Commercial Registry (Registro Mercantil) by submitting necessary documents. Make sure the accurate preparation and submission of all necessary documents, including the Articles of Association and identification paperwork, for efficient registration.

    Obtain a Spanish tax identification number (NIF)

    Every business who wants to operate in Spain requires a Spanish tax identification number (NIF). Acquiring this number , ensures compliance with Spanish tax regulations. The NIF is important for conducting business transactions and fulfilling tax obligations.

    Open a corporate bank account

    You need to open a separate corporate bank account for your business. To open your bank account, make sure all necessary documentation is in order for a seamless account opening process within the Spanish banking system.

    Establish the shareholders at the notary

    A notary public must be present for the formalization of the shareholder establishment. In this phase, the Escritura de Constitución, or Deed of Incorporation, which contains information on the company’s founders, share distribution, and beginning capital, must be prepared and signed.

    Sign the Incorporation deed

    In front of a notary, the Deed of Incorporation must be signed by each founding member. This document represents the foundation of your company’s legal structure, together with the articles of association. The deed will be officially registered with the Mercantile Registry when the notary signs it.

    Register with the social security system

    It is necessary to register with the Spanish Social Security System, if your company will employ people. Enrolling your company and personnel is the first step toward ensuring compliance with labor rules and social security obligations.

    Conclusion

    Setting up a business in Spain as a foreign citizen involves a detailed and structured process. By following these steps meticulously, you can ensure that your business is compliant with Spanish laws and positioned for success in the Spanish market. Proper planning, legal compliance, and understanding the local business environment are key to a smooth registration process and a prosperous venture.

    You can consult with OnDemand International‘s Spanish incorporation experts.