Spain is resolutely pro-entrepreneurship, and for good reason! The country literally rolls out the red carpet for foreign investment, a real economic driver. And the steps involved in setting up a business are straightforward, provided, of course, that you’ve prepared the groundwork… Once you’ve refined your market research, fine-tuned your business plan and mastered the Spanish language, you’ll be ready to go. Follow the guide!
What legal structure should you adopt to launch your business in Valencia?
It’s important to prepare for an expatriation to Valencia, especially when it comes to setting up your own business! Let’s start with the legal structure of your company, a choice not to be taken lightly, although it is not definitive and may change over time. The most important thing is to choose the form that will enable your business to start up and grow efficiently. Generally speaking, expats in Spain opt for one of two options: self-employed status or setting up a company.
Freelance status, or ‘Autónomo’
Ideal for a first foray into the Spanish market or for starting up a small-scale business, ‘autónomo’ status is fairly similar to the autoentrepreneur scheme in France. This status applies to people who carry out a regular activity as their main source of income, without an employment contract. To qualify, you must be resident in Spain for tax purposes, live there for at least 183 days a year and bear in mind that any commitments or debts will have an impact on your personal assets. This status is particularly suitable for consulting or freelance activities.
The steps involved in becoming an autónomo are as follows:
- Obtaining an NIE, which is essential for any formal activity;
- Registering for Spanish social security;
- Declaring the activity to the Agencia Tributaria to obtain a commercial licence;
- Registering with the Spanish tax authorities and choosing tax options.
Although the process may seem lengthy, especially compared with France, Spain has managed to avoid some of the abuses seen with this status in France. Allow a few days to complete all these stages.
The corporate form
If you are thinking of setting up a company in Valencia, here are the key steps to follow, especially if you are a foreigner:
- Obtaining the NIE: this identification number is essential for all foreigners wishing to do business in Spain;
- Registering the name of the company: you will need to reserve and register the name of your company with the Central Commercial Register to guarantee its uniqueness;
- Tax identification code: essential for all transactions and tax obligations, this code can be obtained from the tax authorities;
- Opening a bank account
- Drafting the company’s articles of association;
- Notary appointment: a notary will validate your articles of association and proceed with the formal appointment of directors. This stage also includes all the declaratory formalities required for the official registration of your company.
Once the notary has validated your articles of association and ensured that they comply with legal requirements, you can start up your business and hire staff.