How to start a business

What you do need to start a business in Spain?

María Abraín

María Abraín

29 Sep 2016

Table of contents

    ¡Comencemos!

    No dejes que los trámites y el papeleo te robe la ilusión de abrir un negocio en España. ¡Aquí tienes la guía paso a paso de Lexington para ayudarte a establecer tu negocio sin problemas! 🚀

    Steps to register a Business in Spain 

    1: Obtain an NIE (Foreigner’s Identification Number) 

    Before starting a business in Spain, you need to obtain your NIE (Número de Identificación de Extranjero). This is your identification number for all financial and legal transactions. You can apply for it at a Spanish consulate in your home country or at an immigration office in Spain. Without an NIE, you won’t be able to open a bank account or register your company! 

    2: Choose and register your business name 

    Your company’s name must be unique, so the first step is to check its availability with the Central Commercial Registry (Registro Mercantil Central - RMC). Once approved, you’ll receive a negative name certificate (Certificado Negativo de Denominación Social), which reserves your business name for you! 

    3: Open a business bank account 

    Now that you have an NIE and a registered business name, it’s time to open a corporate bank account. You’ll need this to deposit your initial share capital (for an SL, the minimum is €3,000). The bank will provide you with a certificate confirming the deposit, which is necessary for the next steps. 

    4: Draft and sign the articles of association 

    The estatutos sociales (articles of association) define your company’s structure, purpose, and operational rules. This document must be signed before a notary. If you’re forming a Sociedad Limitada (SL), this is a crucial legal step. 

    5: Register for tax and social security 

    You’ll need to register your business with the Tax Agency (Agencia Tributaria) to obtain a CIF (Código de Identificación Fiscal), your tax ID number. Additionally, registering with Social Security is mandatory if you plan to hire employees. Once this is done, you’re officially in business! 🎉 

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    Funding options for entrepreneurs in Spain 

    Once your business is registered, you might need funding. 💸 Here are some key options to explore: 

    Government grants and incentives 

    Spain offers various grants and subsidies to support entrepreneurs, such as: 

    • ENISA loans for startups and SMEs 
    • Regional incentives for innovation and sustainability 
    • Tax benefits for new businesses 

    ➡️ Check out these top 15 government grants for startups in Spain by Fe/male Switch

    Private investment and venture capital 

    If you have a scalable business idea, you might attract venture capital or business angels. Spain has an active startup ecosystem, with cities like Madrid and Barcelona hosting numerous investment funds. 

    Bank loans and alternative financing 

    Traditional bank loans are still an option but consider crowdfunding or peer-to-peer lending platforms if you’re looking for alternatives. Some Spanish banks also offer special startup loans with favorable conditions. 

    Business compliance and ongoing responsibilities 

    Once your business is up and running, compliance is key! Here’s what you need to keep up with: 

    Annual tax filing and accounting requirements 

    All businesses in Spain must file accounts and tax returns. Consider hiring an asesor fiscal (tax advisor) to help with: 

    • IVA (VAT) declarations 
    • Corporate tax (Impuesto sobre Sociedades) 
    • Payroll taxes, employee and professional withholdings 
    • Annual Accounts and official books 

    Business licenses and permits 

    Depending on your industry, you may need specific licenses and permits from local authorities. 📄 For example: 

    • Restaurants require sanitary permits  
    • Retail shops need a business opening license (licencia de apertura) 
    • Online businesses must comply with data protection laws 

    Hiring employees and labor laws 

    If you’re hiring, Spanish labor laws are strict. You must: 

    • Register employees with Social Security 
    • Provide employment contracts 
    • Follow workplace safety regulations 
    • Comply with collective bargaining agreements (if applicable) 

    💡 Pro tip: Spain has strong worker protections, so understanding labor laws will help avoid legal issues. 

    Starting a business in Spain is a rewarding journey. With the right preparation, funding, and compliance, you can build a successful venture in one of Europe’s most dynamic markets. To make the process even smoother, consider launching your business in a corporate coworking space like Lexington. We offer premium locations in Madrid, including the iconic Paseo de la Castellana, the city’s main business hub, and in Barcelona, on Avenida Diagonal—both featuring flexible offices and fully equipped meeting rooms.  ¡Buena suerte! 🇪🇸 

    ➡️ Take a look at our coworking spaces in coworking en Madrid and Barcelona.  

    Fill out this form to get more details!

     
     

    Written by

    María Abraín
    María Abraín

    Could she be any more joyful? No, she could not! María is our Legal & Procurement manager and, even after more than 20 years, she is still the most smile-y and cheerful person in the team, even though she’s always drowning in numbers, forecasts and selection processes. Mondays are less Mondays with her!

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