Setting up a business in Spain is a challenge due to the bureaucracy involved.  Speaking Spanish will help you with the process, and it is important you understand all the documents you will be faced with.  If you don’t speak Spanish take an interpreter with you when you have any meetings, and use a translator to translate any official documents you don’t understand.  This is a wise idea that could save you immense amounts of time and money in the long run.

For advice on setting up a business in Spain visit www.ventanillaempresarial.org – this is a website set up by the Spanish government; however, it is in Spanish.

It’s also worth considering using the services of a gestor to help you with the paperwork in setting up your own business.  Their charge will depend on the complexity of your business. 

Other sources of useful information on setting up a business in Spain are your local chamber of commerce (cámara de comercio) and the town hall (ayuntamiento).

Types of Business
Most foreigners’ businesses in Spain are linked to the catering, estate agency, construction or leisure industries.  These types of businesses include: restaurants, bars, bed and breakfast, hotels, buying and renting property, electrical, plumbing, carpentry, general building and maintenance and offering activity holidays.

Other examples of successful businesses run by foreigners are: satellite television services, computer repairs and supplies, locksmiths, second-hand book sales, second-hand furniture sales, garden and pool maintenance, hairdressing, beauty, boarding kennels and catteries, English language schools, translation and interpreting and doctors, dentists and other medical professions.

Limited companies take several months to set up and you must take professional legal advice if you want to set one up.

A small limited company is known as a ‘private limited company’ (sociedad de responsabilidad limitada/SL).  This is the easiest company to set up in Spain.  Only two founders are required, there are no public shareholders and there is a minimum set up capital of approximately 3,000euros.  We advise you to check this if setting up an SL as the amount can change.

A larger limited company is known as a ‘public company’ (sociedad anónima/SA) and is similar to a British public limited company, with shareholders.  An SA has at least 50 employees but only needs one director.  The minimum share capital is approximately 60,000 euros – again this should be checked as it is subject to change.

Sole traders (empresas individuales) are very small companies, often one or two people and must register with the trade association relevant to their business.

Self-employed or freelancers (autónomo) are virtually the same as sole traders but tend to be people that work on their own and don’t want to be known as a company. 

Things to Consider
When thinking about setting up a business do your research thoroughly.  Consider the following:

• Is there a market for my business?
• Are there any competitors in the area?
• Do I need an office or can I work from home?
• Will I need to employ people?
• How much capital do I have?
• How will I promote my business?