Spain has become a very interesting place for foreigners to establish their businesses. They can find a solid entrepreneurial ecosystem, skilled partners and workers, and nice weather. All these elements are attractive enough to start an entrepreneurial adventure.

In this article we are going to outline some of the basic requirements that everyone should have in mind when starting a business in Spain.

Legal Structure

In Spain there are two main ways to structure a business: the first one is to work as a Freelancer (Autónomo), and the second one is to incorporate a Spanish Limited Company (Sociedad Limitada).

Identification

First of all, any foreigner interested in starting a business in Spain, either as a freelancer or through a Spanish Company, shall have a foreign identification number (NIE).

Freelance (Autónomo)

To be an Autónomo means to begin a business as a self employed person. There are two steps to become an Autónomo; first of all you have to notify to the Spanish Tax Administration (Agencia Tributaria) that you are going to start an economic activity, and then you should register to the regime of self employed persons in the Social Security (Seguridad Social), with a notification validated by the Tax Administration.

Once you are registered in the Social Security, you will have to pay a monthly fee, being the base fee 256,72 euros. However, current reductions for new Autónomos have recently being approved by the government, including the following features:

For new Autónomos under 30 years old the following reductions will apply:

  • An 80% Social Security fee reduction during the first 6 months. (50 euros approximately);
  • A 50% Social Security fee reduction during the next 6 months after the previous period of time;
  • A 30% Social Security fee reduction during the next 18 months after the previous period of time.

For new Autónomos with 30 years old or over the following reductions will apply:

  • An 80% Social Security fee reduction during the first 6 months. (50 euros approximately);
  • A 50% Social Security fee reduction during the next 6 months after the previous period of time;
  • A 30% Social Security fee reduction during the next 6 months after the previous period of time.

Furthermore, an Autónomo must comply with several tax obligations, mainly to present its quarterly declarations of taxes relating VAT and Retentions made by other professionals.

Spanish Limited Company

A Limited Company is the legal structure most used in Spain to start a company. As stated above, it is necessary to hold a NIE to become a shareholder of a Company.

The main steps to incorporate a Limited Company are as follow:

  1. First of all, it is necessary to obtain the Name of the Company through a Certificate issued by the Companies Registry (Registro Mercantil).
  2. The next step is to open a bank account and to deposit the minimum share capital to incorporate a Limited Company, which is 3.000 euros. The Bank will issue a Certificate of deposit that shall be presented at a Public Notary.
  3. Both Certificates are necessary to incorporate the Limited Company before a Public Notary. All the shareholders will have to be present and sign the deed and the Articles of Associations of the Company.
  4. After signing the deed, it will be necessary to obtain the Tax Identification Number of the Company (NIF = Número de Identificación Fiscal).
  5. Finally, the incorporation of the Company will have to be registered at the Companies Registry, and the beginning of the activity shall be notified to the Tax Administration.

It is important to add that it’s necessary to appoint a Director of the Company, and that the person occupying this role will have to be registered at the Social Security as an employee or as a self employed person (Autónomo) if he or she is a shareholder of the Company with 25% or more of the share capital.

I hope that this article has served its purpose of being a general guideline to evaluate the different options that any person has prior to start a business in Spain. We support the entrepreneurial initiative and encourage any person to follow its goals.

If you have further questions or any doubts regarding initiating your project, feel free to contact us at info@delvy.es

Pablo Mancía
Lawyer
www.delvy.es

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O.

On sales leadership

These are some values that I learned that define a leader:

– A leader is somebody who reaches their goals and achieves beyond their individual abilities aligned with their own values and the organization’s values. A leader without a team is not a leader. A leader works for the team, not the other way around.

– Humbleness. Leaders must get to know themselves first, acknowledge their limitations. Acknowledge they have no recipe for success (no one does). They will succeed only by being curious and trying things faster, testing, changing things again, failing again, learning as fast as possible. In sales, everybody notices when things work well, success is measured in € vs budget. A leader must embrace results with no buts and take action to reach the goals.

– A leader works harder, a leader cares about the goals more than anybody else, they took full ownership of the goals. A leader does about anything to remove bottlenecks away on his team, they assist, train, support everybody, anything it takes. They are always the best resource for their team.

– A leader will always be available for everybody in their team, for personal and professional issues. They go the extra mile. They make sure everybody knows that. They earn the team’s trust.

– A leader makes everyone aware that teamwork is not negotiable. Without a cooperative team, there’s no leader. Lone wolves kill the growing/changing organization. Growth happens only WITH the team, not at their expense.

– Leaders communicate all the time, they don’t keep things to themselves, they are honest with their team. They share good and bad. They share the why’s. They trust their team. Trust precedes process and it is the only path to grow at a scale.

– Leaders learn fast and learn mostly from their team. The team has the most valuable knowledge a leader can get, it doesn’t come from books, blog posts, degrees or mentors. The team gets the real shit from the front line. A leader listens to their teams’ impressions and ideas, they explore them all and give feedback. Leaders generate a culture of idea generation and idea sharing. Leaders stay away from guru preaching.

– It’s important to understand people’s personal and professional ultimate goals and motivations. Leaders spend time asking them on their one on ones and they think about them. They write them down. Everybody is playing the movie of their lives, a leader must find out which one is it, they make sure each team member keeps being the hero of their movie.

– Leaders always lead by example, not by title. They show real bravery. Leaders go first to battle. They call leads and close customers. They apologize to customers when the company screws up. They take the shit first. They don’t leave anyone behind. They don’t show their rank, their status, their difference, their pedigree. Startups are flat meritocratic organizations. Leaders must understand well the company goals and they put them first, they are prepared to step down, or step aside, or leave the company at any moment if needed. Company goals are what matters most. Leaders show this to everyone. Company/collective oriented leaders always thrive.

– Leaders celebrate every victory. They visibly show the pain of every defeat. They take every opportunity to show they care. They analyze why/what/how and find out always changes to be made. Then they go and make the changes. They change anything or everything, but never keep on doing what doesn’t work. They shake the whole company inside out before/when goals are not met.

– Leaders set goals that are both ambitious and achievable. They work along the team to make sure they meet the goals. They are flexible when the goals are set wrong. They are implacable when goals are not met.

Most people will never be a leader. It takes time and patience, it takes survival skills, it takes real personal strength. But after committing to all these things, things start to work. Leaders are such when and only when they brought teams to make things work, nobody becomes a leader just by trying it. True leaders make sure they don’t leave the boat until things work (as they will work, ultimately!). They don’t leave the job undone.

– Bernat Farrero CEO at Itnig