How to legally start a company in Spain step by step

Would you like to start a business in Spain? Let’s see everything you need!

Starting your own business is the dream of many and the best future option for those motivated by professional challenges. Entrepreneurship requires a series of skills, characteristics, and knowledge that are not only learned through academic training but also through real experience — which is why many of the most successful businesses are the result of several failures or lessons learned, depending on how you look at it.

The only thing you must be clear about before entering the business world is how to open a company in Spain, regarding requirements and legal terms. Beyond that, everything depends on you and your great ideas.

Keep reading — in this post, we’ll tell you everything about how to start a business from scratch!

Steps to start a business in Spain from scratch

• Define your business idea and study the market: carry out a thorough analysis of the business environment to assess the viability of your project and the location you’ve chosen.

• Choose the legal structure: decide which legal form best fits your business model. This will affect legal and tax responsibilities, as well as the partners and owners involved.

• Reserve the brand name in the Commercial Registry.

• Draft the company bylaws: in the case of corporations, you must draft the bylaws, which are the internal rules of your future company.

• Obtain the tax identification number: request the company’s NIF from the Tax Agency.

• Provide the minimum share capital required to form the type of commercial company you’ve chosen.

• Register your company in the Commercial Registry of the province where your business headquarters will be established.

• Register with Social Security: if you’re going to hire employees, you must register yourself as an employer with Social Security and also register your workers.

• Obtain licenses and permits: depending on your type of business and location, you may need specific licenses and permits, such as municipal, health, or environmental licenses.

• Trademark your brand: if you want to protect your brand, you can register it with the Spanish Patent and Trademark Office.

• Open a business bank account in your company’s name to manage financial transactions.

• Be careful not to violate any tax regulations!: you must comply with tax obligations such as Corporate Tax or VAT and maintain proper accounting records. When a company grows and starts generating profits or expanding internationally, it’s important to seek professional tax advice to operate safely, avoid risks, and benefit from favorable regulations.

• Take out business insurance and, if necessary, hire employees for your company.

• Finally, you can start operating your business according to your business plan and marketing strategy.

What permits are required to open a business?

The permits required to open a business in Spain may vary depending on the type of economic activity, location, and other specific circumstances of your company. Below, we mention some of the most common permits and licenses you may need:

• Opening license: most physical businesses, such as shops, restaurants, or workshops, require an opening license. This license is granted by municipal authorities and varies according to the location and type of activity.

• Activity license: some municipalities require a specific license for the type of business activity you’ll carry out, in addition to the opening license. You should check with your local city council for accurate information on the licenses required in your area.

• Health license: if your business involves food handling, catering, medical care, or any health-related activity, you’ll likely need a health license issued by local health authorities.

• Environmental license: all companies that may have a significant environmental impact, such as those related to industry, construction, or waste management, may need an environmental license to comply with environmental regulations.

• Construction permit: if you plan to make modifications to the premises or build new facilities, you must obtain a construction permit from local authorities.

• Alcohol sales authorization: if you plan to sell alcohol in your business, you’ll need a specific authorization to sell alcoholic beverages. These permits vary depending on the autonomous community.

• Live music license: if you want to offer live music or play recorded music in your establishment, you must obtain a music-use license, known as an SGAE license, through the Spanish General Society of Authors and Publishers.

• Outdoor advertising permit: you’ll need this if you plan to place signs or advertisements outside your business. A municipal outdoor advertising permit may be required.

• Authorization for special activities: if your business involves special activities such as gambling, private security services, or cultural events, you’ll likely need specific authorizations for these activities.

• Commercial Registry: if you’re creating a company, you must register it with the corresponding Commercial Registry.

• Trademark registration (optional): if you want to protect your brand, you can register it with the Spanish Patent and Trademark Office.

Now you know everything technically necessary to open a business in Spain, but don’t forget that what really matters is keeping your full potential active. At Educa.Pro, we have the best initiatives for that. Subscribe and stay updated with all the latest news from the business world!