Spain is not just a beautiful country to live in—it’s also full of business potential. With access to the European market, a thriving entrepreneurial scene, and an international outlook in cities like Madrid, Barcelona, and Valencia, it’s no wonder more and more foreigners are choosing Spain to launch their business ventures. If you’re a non-Spanish citizen considering starting a business here, understanding the legal and administrative steps is essential. At Lawhill, we help international entrepreneurs every day, and in this guide, we break down the process in simple, actionable steps.
Step 1: Get Your NIE (Foreigner Identification Number)
Before anything else, you’ll need a NIE (Número de Identificación de Extranjero)—a personal identification number required for all legal and financial procedures in Spain.
How to get it:
You can apply for a NIE through the Spanish consulate in your home country or at a police station in Spain. It usually requires a passport, application form, and a reason for the request (e.g., business registration).
Step 2: Choose the Right Legal Form
Spain offers several company structures. Here are the most common for foreign founders:
- Sociedad Limitada (SL) – A limited liability company, ideal for most small and medium-sized businesses.
- Sociedad Anónima (SA) – Suitable for larger companies or those planning to raise capital.
- Autónomo – A self-employed status, ideal for freelancers or solo entrepreneurs.
- Branch or Representative Office – For foreign companies expanding into Spain.
The SL is the most common choice due to its flexibility, limited liability, and straightforward registration process.
Step 3: Open a Spanish Business Bank Account
Once your legal structure is chosen, you’ll need to open a business bank account in Spain. For an SL, you’ll need to deposit the minimum share capital (usually €3,000) and obtain a bank certificate confirming the deposit. This is required for incorporation.
Step 4: Register Your Company Name
Before forming the company, you must check and reserve your business name through the Central Mercantile Registry (Registro Mercantil Central) to ensure it’s unique and available.
Step 5: Sign the Deed of Incorporation
Next, you’ll need to sign the public deed of incorporation (escritura pública) before a Spanish notary. This document includes your company’s structure, business purpose, address, capital contribution, and shareholder details.
Step 6: Obtain a Tax Identification Number (CIF)
After signing the deed, you’ll need to apply for your company’s tax identification number (CIF) from the Agencia Tributaria (Spanish Tax Agency). This is like a business ID number and is essential for invoicing and tax compliance.
Step 7: Register for Taxes and Social Security
Depending on your business activity and size, you may need to register for:
- Corporate Tax
- VAT (IVA)
- Social Security, if you plan to hire employees or operate as an autónomo
It’s also important to determine if your business qualifies for any tax incentives or deductions.
Step 8: Register with the Commercial Registry
Finally, you’ll need to register the business in the Commercial Registry (Registro Mercantil) of your province. This finalizes your company’s legal status and allows you to begin operations.
Bonus Tip: Work With Local Experts
Spain’s administrative procedures can be complex—especially for non-Spanish speakers. That’s why many foreign entrepreneurs choose to work with legal partners who specialize in company formation and understand the nuances of local law and bureaucracy.
At Lawhill, we work exclusively with international clients. We manage the entire company formation process—from NIE to registration—so you can focus on building your business.
Ready to Launch Your Business in Spain?
Setting up a business in a new country may feel daunting, but with the right legal support, it becomes a clear, smooth process. If you’re planning to start a business in Spain, our team is here to help—every step of the way.
👉 Contact Lawhill to get started.
