How to set up a company in Spain: step-by-step guide

Guide to setting up your business step by step

If you want to start a business in Spain or become self-employed, this guide explains the process step by step, the financing available and how to grow your business from day one.

We know that it can be a long and confusing process. At BBVA we want to help you on your way to entrepreneurship, which is why we have developed this guide, to tell you everything you need to know to achieve it.

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To ensure that starting a business doesn't dampen your entrepreneurial spirit, join BBVA, and you will receive specialized advice free of charge on how to set up your company. And an account with no fees or conditions so you can grow your business from day one.

Valid for new companies under incorporation. An account with no maintenance or administration fees. 0% NIR, 0% APR.

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In this podcast, we discuss the importance of having the right advice and support to answer all your questions when starting a business.

Before you start your business: business idea, plan and analysis

Have a clear business idea

You always have more chances for success if your idea is well developed.
Write a Business Plan

It will be helpful to do a SWOT analysis (strengths, weakness, opportunities and threats) of your idea.
Undertake market research

It might also be helpful to carry out a Self-Assessment of Your Entrepreneurial Capacity, to better know your product or service and your chances of success.

Do you want to start a business or become self-employed?

If you plan to start a business, first you have to decide whether to register as a self-employed worker or to create a company. Below we will tell you what steps to take depending on which one you choose.

Choose an option:

As a company

As a self-employed worker

1. Documentation and admin for creating a company

Research the legal structures for creating your company

Research the different options available to you for starting your business in Spain and see which one is most advantageous for you. The most common forms are:

Limited Liability Company

Employee-owned company

Cooperative company

Limited company

We offer free advice to help you set up your business

Become a BBVA customer and, together with Ayuda T Pymes, we'll advise you at no cost with the processes and paperwork to set up your company. And you can save up to €720 gross by direct debiting your taxes and/or social security payments from your new Empresas Bienvenida Account.

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Prepare your articles of association and check that your company's name is available

Write your company articles of association: This includes providing some essential information, such as name, capital, company address, etc.

Apply for Certification stating that your business name is unique in the Companies Register.

Open an account and pay in your capital

Open a bank account solely for the company you are going to set up. This is where you have to deposit the company capital, which is figure that will vary according to the type of company you have chosen to create.

Remember that if the company is made up of several shareholders, each must make their capital contribution.

Request a bank certificate for share capital deposit, as you will need it to present it to a notary when you set up your company.

More information on the Empresas Bienvenida Account

Company deed before a notary

To do this, you must go to a notary and make sure you provide the following documentation:

Articles of association

Certification stating that your business name is unique

Bank certificate for the share capital deposit

ID cards of the shareholders

Company Tax ID and Registration

Get your provisional VAT number. To do this, you must register your company with the Tax Service. Form 036, with a copy of the deed of incorporation and a copy of the articles of association in the Tax Agency.

Set up your company with the Commercial Registry of your province. Without this, you cannot obtain full legal competency. Remember that your company will not yet be protected as a brand, as you will need to register it with the Patent and Trademark Register.

Once you have obtained all this, you must request a permanent VAT number.

Specific admin for starting up

Remember that in addition to the general admin, there are some administrative steps that you must take into account according to the business that your company will be doing, and other additional steps for certain legal entities or if you will be hiring employees.

These specific administrative steps include:

Activity permit: This is obtained from your town hall.

Registration in Official Bodies or Registers.

Admin with the Social Security General Treasury: how to register workers or give notice of the opening of your work center

Legalization of the Annual Accounts Book: with the Commercial Registry.

The product that can help you

For companies with a turnover below 5 million

It supports your company's needs, from everyday operations to financial planning, all without fees.

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2. Financing, grants and subsidies to create your business

What expenses are you going to have?

Don't forget about the costs that your company will incur, since although individuals do not need to contribute a statutory minimum capital amount when setting up a business, legal entities must do so, with some exceptions, and this amount varies according to the chosen business form.

The minimum: there are legal forms that do not have a minimum legal capital requirement, such as the Civil Company (Sociedad Civil) or Collective Company (Sociedad Colectiva), among others, although the most popular form is the Limited Liability Company, for which the minimum legal capital is one euro.

Maximum: currently, and excluding venture capital companies, public limited companies (Sociedad Anónima or Sociedad Anónima Laboral) need a minimum of 60,000 euros.

Grants and subsidies for your business

Once the company has been created, we recommend that you go to your local small business center to find out about grants and subsidies that public administrations and related bodies have in place to incentivize, maintain and foster economic activity and entrepreneurship. Application deadlines change, as do the eligibility requirements, so the best thing to do to keep up is to consult with your PAE Point, the National Grants Platform or the Tax Agency's grants and incentives database.

If you have reached this point, you will probably already be highly aware of the importance of comprehensive long-term planning of your business idea, the definition of the activity you will be carrying out, a risk assessment, your financial capacity and the business' viability, so financing could be a viable option.

If you want to pursue a sustainability, digitization or cohesion and equality project, BBVA will work with you and help you apply for European Next Generation Funds.

We offer a boost for your business

No maximum limit, whatever your company needs.

Up to 10 years to repay it.

Fixed, variable or mixed interest rate.

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A credit line for your business's usual payments with no activation cost.

Finance payments to suppliers, taxes, payroll, social security or the collection on your bills.

You only pay an availability fee for the money you use from your limit, which varies depending on the term or purpose for which you use it.

No early repayment penalty.

See conditions

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The loan you need for your agricultural and livestock operations. Tailor the term and the interest rate.

*Product available for businesses with a turnover under 5 million euros.

Apply

More information

Financing to cover cash flow needs, gaps between collections and payments, purchase stock, etc. Only available in-branch.

Apply

More information

3. How to grow your business once your company is set up

Networking and events to grow your business

Get involved in business or sector events and events that take place in your community. It is a great opportunity for networking that will help you continue to grow as a business.

Make the most of synergies with other entrepreneurs and get inspired by real-life case studies such as those you can find on BBVA's Sharing Knowledge or in content you can find on our website.

Training for entrepreneurs and new business owners

It is also important to take advantage of the cross-reaching training opportunities that public institutions that support entrepreneurship offer. Accounting is the most obvious, but there are many more areas to learn about, such as marketing or communication.

Make life easier for your customers

It is essential to provide your customers with a payment method that is suitable for their way of working and using new technologies. Providing them with a good online and physical payment experience is vital to create a position image of your business.

See the POS terminals for your business

FAQs on how to start a company

The purpose of this guide is to explain, step by step and simply, what the process is of starting a business, whether as a self-employed worker or by setting up a company.

The guide will also show you the admin required to set up your business, information on financing and grants available, and some tips on how to grow your business once you're up and running.

If you already know that you are going to set up as a business, you need to know the administrative steps to follow:

Write your articles of association.

Apply for Certification stating that your business name is unique in the Companies Register

Open a bank account solely for the company you are going to set up, and pay in the share capital contribution

Register the company before a notary. Remember to have to hand the following documentation:

Articles of association

Certification stating that your business name is unique

Bank certificate for the share capital deposit

ID cards of the shareholders

Get your provisional CIF (Tax ID).

Set up your company with the Commercial Registry of your province. Without this, you cannot obtain full legal competency. If necessary, register with the Patent and Trademark Register.

Once you have obtained all this, you must request a permanent VAT number.

The average time that it takes to create a company in Spain is 13 days, but we recommend that you don't rush; mature your business idea, make sure it is viable and accept advice on how to establish it on the most solid terms possible.

We recommend that you actively check your options, since the grants not only have fixed filing deadlines, but fluctuate over time. To keep up with this, remember that the Directorate General of Industry and SMEs publishes updated information on grants and incentives programs for creating companies, which are offered by public administrations and other related bodies.

This is an electronic document used in the CIRCE system that collects all the information necessary to establish and start-up a company. It replaces different forms requested by bodies and administrations involved in the process of creating companies, but at the moment it only serves to register an asset community (Comunidad de Bienes) and civil company (Sociedad Civil), or a limited liability company (Sociedad de Responsabilidad Limitada).

Legally, it is not mandatory for each shareholder's contribution to be equal. Some can contribute more than others according to the shareholder agreement in place.

This document analyzes and describes a business opportunity, but also determines whether it is economically and financially viable, and develops the strategies needed to turn it into a real business project. It will help you to know whether the idea is really feasible or not.

The town hall of the municipal district in which the activity will be carried out, although it is true that the Sustainable Economy Act of 4 March 2011 removed the obligation to obtain an opening license for most activities, making it sufficient to file a statement of responsibility.
1. Documents and admin for a self-employed worker

Register with social security

The first step to starting a business is to visit the General Treasury of Social Security.

You must register with the Special Regime for Self-employed Workers, and receive a Social Security number.

You can register both in person by filling in form TA0521 and through the Social Security virtual office.

You can also register as a business owner if you are going to be a company shareholder. To do this, you will have to fill in form TA.6 and submit the document that the Tax Agency has given you with the Tax Identification Number (NIF), which includes the Company's Economic Activity.

Social Security Virtual Office

Record the management company or mutual society

When registering as a self-employed worker with the Social Security Institute, you must state the management company or mutual society chosen to cover the risk of occupational illness and work-related accident.

If you are not sure which mutual society you can choose, you can find more information on the website of the Association of Mutual Societies for Work-related Accidents and on the list of mutual societies that on the Social Security website.

Register with the Tax Agency

The next step is to visit the Tax Agency to register in the Register of Employers. Once there, you must file the register declaration, providing the following forms:

Form 036: document that will help you make your entry in the Register of Employers and register with the Tax Agency.

Form 037: document you need to register as a self-employed worker with the Tax Agency. This is a simplified form with respect to form 036.

Both documents can be presented in person or at the Tax Agency office with your electronic certificate.

Tax Agency website

Work center

Are you going to open business premises or work from home? If you first choose the option, you must record your work center's opening in the Labor Department of your autonomous region.

If you are going to open a work center, you must request:

Certification stating that your business name is unique in the Companies Register.

The licenses required depending on the type of activity you are going to carry out. These licenses may vary depending on your town or autonomous region.

You will need an account to professionally manage your business. If you don't have one...

For self-employed professionals

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2. Financing and grants

Grants and subsidies for the self-employed

The website of the State Public Employment Service includes a package of measures to boost entrepreneurial projects:

Social Security relief and credits

Credits for self-employed workers for work-life balance and relating to contracting

ICO grants

Ayudas de las Comunidades Autónomas

If you want to pursue a sustainability, digitization or cohesion and equality project, BBVA will work with you and help you apply for European Next Generation Funds.

What expenses are you going to have?

Before starting your business, you need to know all the costs you will have to pay. We'll tell you how:

Self-employment contribution.

VAT.

Personal Income Tax.

Management fees.

Public Liability Insurance.

Banking fees.

Website.

If you need financing, at BBVA we offer loans of up to €50,000 for self-employed workers, with repayment periods ranging from 14 months to 8 years. You can find more information on our Online Negocios Loan for Self-employed Workers and Businesses.

3. Grow your business

Get to know other entrepreneurs

Get involved in business or sector events and events that take place in your community. It is a great opportunity for networking that will help you continue to grow as a business.

Make the most of synergies with other entrepreneurs and get inspired by real-life case studies such as those you can find on BBVA's Sharing Knowledge or in content you can find on our website.

Take advantage of training opportunities

It is also important to take advantage of the cross-reaching training opportunities that public institutions that support entrepreneurship offer. Accounting is the most obvious, but there are many more areas to learn about, such as marketing or communication.

Make life easier for your customers

It is essential to provide your customers with a payment method that is suitable for their way of working and using new technologies. Providing them with a good online and physical payment experience is vital to create a position image of your business.

Check our range of POS

FAQs on how to start a company

The purpose of this guide is to explain, step by step and simply, what the process is of starting a business, whether as a self-employed worker or by setting up a company.

The guide will also show you the admin required to set up your business, information on financing and grants available, and some tips on how to grow your business once you're up and running.

If you already know that you are going to set up as self-employed, you need to know the administrative steps to follow:

Register with social security.

Record the management company or mutual society.

Register with the Tax Agency.

If you are going to open a work center, you must apply for the necessary licenses, as well as inform the Labor Department of your autonomous region.

Usually, if you do it on your own, it takes one to five days to register as a self-employed worker. As we have mentioned before, there are two sets of arrangements to carry out: registration with social security and registration with the Tax Service.

Yes, you can register online both for the Tax Service and Social Security. To do this, you will only need your electronic certificate and the Cl@ve PIN.

From 1 January 2023, the self-employed worker contribution payment is determined according to your forecast income.

From now until 2025, a progressive contributions scheme is in place whereby the self-employed workers with the lower incomes pay less, and those with the larger incomes pay more. The self-employed worker contribution payment is based on 15 contribution scales based on forecast income.

To give you an idea, these are the minimum payments for the minimum contribution level:

2023: minimum payment of €230.

2024: minimum payment of €225.

2025: minimum payment of €200.

Yes, of course. At the end of the year, the self-employed worker must confirm their contribution with the authorities to see if it matches their real income. There are two scenarios: the Administration repays part of the payments or claims the difference, depending on whether the net revenue is below or above the forecast.

At the end of the year, the contribution level can be changed up to 6 times depending on the income you think you will have.

Yes, the flat rate. All self-employed workers who register can request the flat rate, for which they will pay €80 for the first 12 months, regardless of their income. At the end of the first year, the self-employed worker can continue to pay that monthly flat rate for another year, so long as their income is below the national minimum wage. In 2023, the monthly minimum wage was €1,080.

A self-employed worker, you face a series of expenses in the course of your business: tools, fuel, travel expenses, rental of premises, mobile phone, etc. In short, all expenses that a self-employed worker must pay in the course of their business.

In order to deduct these expenses, you must provide corresponding invoices.

The taxes payable by a self-employed worker are as follows:

Value Added Tax (VAT). All invoices submitted must include VAT. The self-employed worker acts as an intermediary between the Ministry of Finance and the end consumer. Therefore, the self-employed worker will collect VAT on their invoices and pay it to the Tax Service each quarter.

Personal Income Tax (IRPF). This tax applies to the company's income obtained by the self-employed worker and will be paid quarterly along with VAT.

An everyday self-employed person might pay the following expenses:

Self-employment contribution.

VAT.

Personal Income Tax.

Management fees.

Public Liability Insurance.

Banking fees.

Website.