Setting up a new business is a huge decision. Whether you beginning your first business or your twentieth, there are numerous aspects to consider and many regulatory hurdles to jump through. Barcelona is famous for attracting entrepreneurs and offering business opportunities. Barcelona is a multicultural city with hoards of visitors and commercial attractions in addition to being a business center. The diversity of institutions in the Catalan capital allows for the growth and development of all sorts of innovative companies. Many people have brilliant ideas for a company or startup that they’d like to establish but aren’t sure how to get started. Many folks hopes of starting a company in sunny Barcelona have come true.
However, as anyone who has purchased or rented commercial real estate in Barcelona will testify, there are various procedures and bureaucratic obstacles to conquer before you can turn your dream of starting a company into a reality. Once it comes to administration, Spain is something of a drama queen. There’s a ton of requirements, and they have to be fulfilled correctly. The Spanish Government’s Ministry of Industry, Trade, and Tourism also has an English language website for all of those interested in working in Barcelona, including those looking to start their own company. They have a step-by-step guideline to assisting you with the process of developing and starting a company in Spain. We provide some guidance in this article on how to establish a Limited Liability Company, which will allow you to operate a business in Barcelona, but we also suggest that you consult a professional before starting the process. If you are looking for an event venue rental to arrange a corporate event, look no further!
Phase 1: Make sure all of your documentation is valid.
You must have all of your legal documents up to date before attempting to register your business. Immigrants residing in the country would need an NIE code, a social security number, and Autonómo registration (freelancer). Acting as a freelancer and running a company this way is perfectly legitimate. That being said, as your business expands, develops, or introduces partners, you may want to consider creating a limited liability corporation. The NIE, or Numero de Identificacion de Extranjero (Foreigner Identification Number), is a paper that is necessary to do business in Spain. The NIE can also be used for other items, such as paying any taxes or purchasing a home.
Phase 2: Obtain a provisional tax identification code for your company
The CIF must be collected from the Delegación de Hacienda (Tax Office). You must request a certificate from the Mercantile Registry for your company name, as well as your passport or residency permit, to qualify for this. You must also have an address for your company’s headquarters.
Phase 3: Additional preliminary documentation
Please ensure you have your passport and the Certificado de Empadronamiento (Community Registration Certificate). You’ll need these to move on to Phase 4.
Phase 4: Negative social denominación certification
Negative certification of the social denomination implies certifying the authenticity of the suggested company name, which will grant you full possession of the real company name and will be retained for six months after you select it. You must go to the Central Commercial Register (Registro Mercantil) to receive it; it charges 16.25€ and normally takes 2 days. Access the Mercantile Register’s website (www.rmc.es) and see what names have been already listed and make sure the one you want isn’t already published. Then you are all set to apply for your desired name.
Phase 5: Pay the Economic Activity Tax (Impuesto de Actividades Económicas)
The next move is to submit the Impuesto de Actividades Economicas or Tax on Economic Activities in English. It is the taxation that you must pay to the government in order for you to engage in economic activity. It can be accomplished at the Delegacion Especial de Economia y Hacienda. Based on the market, it varies. Then, you’ll obtain the Codigo de Identificacion Fiscal (CIF), which is a tax identification code. Based on the quantity of share capital invested, this tax varies from 150 to 300 euros.
Phase #5: Create a business bank account
What are the advantages of holding a business bank account? It serves a number of purposes. It’s where customers pay you for your products or services, so it’s where your money goes. Second, that’s where the government can subtract taxes from, so having one is a prerequisite. It requires about a day to make one, and it’s totally free. It’s worth mentioning that you’ll need to be a morning person as banks here only open from 9 a.m. to 2 p.m. (with an exception on Thursdays when they work 9 a.m.-8 p.m.). Please remember that you’ll need to deposit at least 3005.06€ to cover the initial opening costs.
Phase 6: Schedule an appointment with a notary public
You’re nearly done with the paperwork. With all the above papers in hand, you’ll need to arrange a meeting with a notary and get them formally signed and stamped in preparation for presentation to the court. Prepare to pay a hefty premium for a set of stamps – about 500€ based on the amount of paperwork.
Phase 7: Go to the Ayuntamiento and get a Municipal Licencia de Apertura
Now is the moment to register your place of business with the Ayuntamiento (City Hall) and ask for the Licencia Municipal de Apertura (Municipal Opening License) from the City Hall’s Departamento de Urbanismo (City Planning Department) that essentially states you’re going to start your business in that particular area. Expenses -> 350€
Phase 8: Find yourself a Gestor
An effective gestor is similar to an accountant but with a greater view of the tax and financial responsibilities. He will assist you in registering for several meetings, completing financial and legal documents, reminding you of what you need to do and when you will have to do it, and representing you at the tax department.
Although certain services cost between €100 and €200 a month (more if you’d like an English language facility), the time, hassle, and penalties they save you make it worth the cost. The expenses are also subject to income tax, so ask your current gestor about it as well!
For instance, this is an alternative move, but business owners around the state would accept that gestors are invaluable. If you only spend money on one thing in the early stages of your business, make it this. Make sure to go to a gestor’s office with a strong reputation.
Phase 9: Sign the Certified copy
As part of the legal issues concerning finance and business in Barcelona, all shareholders in the business must sign the Escritura de Constitución (Deed of Incorporation) in front of a notary. You must submit your business name certificate, bank certificate, and provisional CIF showing the sum transferred into the account to the notary needed to finalize this part of the business setup.
Phase 10: Render a company registration
It is performed at the Mercantile Registry, and you’ll need to supply them with the deed of incorporation, evidence that the transfer tax has been charged, and, most importantly, the certificate proving that your company name has been properly licensed to conclude this part of your business configuration.
Phase 11: Locate your operational location
The very next logical move is to decide the position of your facilities. As a consequence, you’ll need evidence that you own or lease a rental office, cafe, storage, or other facilities (obviously based on the area of your business). After that, you’ll move on to the next level.
Be patient and get prepared for the bureaucracy.
Spain is notorious for its bureaucratic procedures, and expatriates purchasing property here should expect to wait months for documentation to be processed. Many people expect the same delivery times in Barcelona as they do in their home countries, but things are done differently in Spain. This is frequently due to the fact that interacting with older or even historic structures necessitates special permits.
Bars and cafes are generally more difficult to open than shops and offices.
You won’t have to go through nearly as much paperwork to start a vegetable shop, clothing store, jewelry shop, or some other form of the company as you would for a restaurant or bar. You won’t have to stress too much about stuff like sound insulation and strict fire codes. The city council is unlikely to request a venture license for operations. It may be as easy as supplying the correct details, completing the appropriate paperwork, and getting your shop’s plans ready.
That’s what there is to it! That’s what you need to know about setting up a company in Barcelona. Now comes the tough part: earning money. We wish you all the best for the success of your company, and we are grateful for the opportunity to assist you!