Opening a business in the European Union is a very tempting prospect, which has increasingly attracted our compatriots in recent years. Many were seized by the desire to open a new window to Europe; business in Spain is one of the areas considered by Russian businessmen as an opportunity to make good money and settle in a new place.
Is Spain as good as they say? Do we have the opportunity to become successful businessmen in a country exotic for Russians? Does it make sense to invest money in its economy?
A base without which it is better not to try
Citizens of the CIS have long begun to explore the European market and not only do business with its enterprises, but also open their own companies in the territory of the European Union.
Over the past decade, good experience has been accumulated, by studying which you can understand that there are prospects. But there are also pitfalls that cannot be ignored. Especially when it comes to the Kingdom of Spain.
In this country, our compatriots have not only examples of success, but also many crushing failures. Failures should not push you away from an amazing, unique country, but only become an experience for those who are not looking for easy ways, but have a goal and are determined to follow it.
The main thing is to think through everything and prepare
A guarantee of success will be the basics prepared at home. These include:
- Knowledge of Spanish. It is important that at least one of the partners speaks the local language at a good level.
- A clear understanding of what exactly the new company will do.
- Having experience in the industry that you plan to develop.
Small business in Spain
- Marketing research that gives an idea of the opportunities and prospects for business development.
- Knowledge of local laws.
You need to be prepared for the fact that in Spain the bureaucratic system sometimes reaches the point of absurdity. You will have to deal with many authorities and sign a lot of useless papers. In addition, you need to take into account the fact that the tax system in Spain is not as promising for businessmen as in other European countries. The minimum monthly fee for entrepreneurs is 250 euros. This is a relatively significant amount for beginning businessmen.
Which business is more promising?
As in other countries, Spanish business has its own niches that can be occupied. The most promising areas of activity are:
- Agriculture;
- gambling business;
- restaurant business.
Creative people can find themselves in any business. If the population does not need a certain product, it can be created artificially.
Current prices in Spain - the next video is about this.
History knows hundreds and thousands of such examples. But, if we talk about calculation, and not about the realization of some cherished dream from childhood, preference should be given to those industries that are the most promising.
Features of the gambling business in Spain
Those who have decided to buy a business in Spain should know that the large gambling business is a closed topic for foreigners.
Barcelona casino building in the city of the same name
This segment is busy and it is impossible to buy anything in it. However, you can make good money in the small gambling business. Slot machines can bring in good income. This direction is especially promising in tourist areas. Due to the crisis, many Spaniards are now selling their gambling business. So purchasing it will not be difficult. It is more promising to locate machines on the territory of other establishments. These could be discos, cafes, restaurants, etc.
Necessary documents to open your own business
The list of necessary documents for a foreigner to register his company in Spain consists of:
- A foreign passport – yours or a resident’s.
- NIE (Numero de Identificacion del Extranjero) is a foreigner identification number that is issued to all foreign citizens who have any interests in this country (business, professional, personal, etc.).
- A bank statement indicating the existence of a bank account and the financial resources available on it from the company’s authorized capital.
- A document from the special Register of Names of Spain stating that the name of the registered company is unique.
- Escritura. This is an agreement on the establishment of a company and its charter in one document, which is certified by a notary.
In addition, if employment contracts are concluded with company employees, then the company is subject to mandatory registration with the Ministry of Labor of that country.
Prospects for the restaurant business
To open any type of restaurant outlet, a tourist area is best suited. We must remember that there are many smart people who want to make money by feeding tourists. Along with great prospects, there will also be considerable competition.
Nutrition advocates can go in three directions:
- buy a ready-made business;
- start from zero;
- become a member of a growing franchise.
Before opening a restaurant business in Spain, you need to study the tax system and estimate how much you will have to contribute to the state treasury. These include social contributions, VAT, and economic activity tax. If you approach the issue correctly, you can almost immediately get a profitable, consistently profitable enterprise.
Experience shows that of the failed business ventures in Spain, most belonged to the restaurant business.
There are other areas in which our compatriots achieve success. This is real estate, construction, services and sales, etc. As they say, where ours did not disappear. You can find yourself in any business.
It is not enough to decide which type of activity will be more profitable.
Very old Spanish restaurant Sobrino
To ensure that purchasing a business in Spain does not become a waste of time, you need to learn more about the laws of the Kingdom regarding business activities.
Documents for foreigners doing business in the Kingdom of Spain
The best way to develop your activities in Spain is to stay in the state on a business visa. It is not difficult to obtain the document. The Spanish authorities are not just loyal to foreigners, they are very interested in outside help, since the state's economy still leaves much to be desired. Opening a business means new injections into the treasury, as well as new jobs.
Prove that you can successfully develop in the Kingdom, and you will be welcomed with open arms.
A business visa to Spain is a good type of permit for anyone who wants to visit the country. In order to start processing it, you need to have an official invitation from your Spanish partners, which will describe the activities of the invitee in the Kingdom.
The document must indicate the position of the inviter, his first and last name, etc. In addition to the invitation to the embassy, a standard set of documents necessary for issuing a visa is provided. This:
- a foreign passport, the validity of which must be three months longer than the expiration date of the visa received + a copy;
- if you still have old, dated international passports, it is advisable to present them too;
- standard form questionnaire. The language of completion is English;
Sample of filling out the first page of the Spanish visa application form
- Questionnaire;
- Two color photos. Size 3.5x4.5 cm. The face should occupy at least 70% of the entire photo. The background must be exclusively white;
- Document from the place of main activity. Only on company letterhead. The contacts of the company and all information about the applicant (position, salary, length of service, etc.) must be indicated;
- Bank confirmation of financial solvency;
- Air ticket reservation. This document must bear the seal of the company that made the reservation;
- honey. insurance;
- Russian passport + copy;
- hotel reservation;
- a copy of the passport of the official who signed the invitation.
Business immigration to Spain is a well-trodden path that many of our compatriots have followed.
Filling out the second page of the Spanish visa application form
The large number of required documents should not be intimidating. Spanish officials are very loyal to business expats and will not create any obstacles. The document will be issued within 6-7 days. The initial business visa is not multiple entry. To open a multiple-entry Schengen visa, you need to obtain at least two business visas.
In order to start doing business in Spain, you need to obtain a business permit in the state. This permit will cost approximately $30.
The most promising types of enterprises
To develop business activities in the Kingdom of Spain, you need to clearly determine the form of the enterprise that is intended to be opened. The list of options is wide: from an individual enterprise to a cooperative. You can open a limited liability company without issue or with issue of shares, with unlimited liability, etc.
Most businessmen in Spain opt for an LLC. This is due to the fact that registering such a company will not require particularly large investments. You need to deposit 3,000 euros into the account of the company you are opening.
It will be possible to engage in entrepreneurial activity only after the tax service provides a foreigner identification number. Without it, doing business in Spain is impossible.
Registration and legal forms of doing business in Spain
Unlike the most acceptable in our country, there are only two forms of doing business and LLC (by the way, you can see how to register them by following the links), in Spain there is where to “wander around”. But! Again for residents. This:
- Joint-Stock Company. To open, one shareholder is enough, the size of the authorized capital can be 21, 61, or 121 euros, 25% of which must already be deposited into the bank account at the time of company registration.
- Limited Liability Company. One shareholder is also sufficient for opening. The size of the authorized capital is at least 3,000 “European rubles”, which at the time of registration must be in the account in full.
- Partnerships without registration of a legal entity. All management criteria, rights and obligations of participants (partners), as well as shares in profits are specified in the agreement. Partners are required to comply with income tax obligations.
- A company with unlimited liability. Number of participants – from 2 people. The amount of authorized capital has not been established. The company pays income tax to the state.
There are also several other organizational and legal forms, but the most acceptable for Russian businessmen (as practice has shown!) is LLC. In case of registration of a limited liability company, in case of failure, you risk losing only the authorized capital of the company. And everything that was acquired through “backbreaking” labor: cars, real estate, etc., will remain with you.
I’ll briefly tell you about the “cunning” move that I promised to write about. In order not to wait six months to obtain the right to work in the country, you will need a resident administrator. This could be your good acquaintance, friend, or just a specialist manager about whom you have good reviews and who will work exclusively for a salary. Or not work at all, but only be a “figure on paper.” By the way, this is not only done in Spain. But if you are a resident, then there will be one less problem (and expense).
Business permit
In order to open a business in Spain, a novice businessman must obtain licenses and permits from local authorities. Different regions may have different rules and requirements.
Detailed map of administrative divisions of Spain
To find out the requirements for novice businessmen, you can contact the city hall. For example, in order to open a business in Madrid, you need to register your work premises in the real estate registry. Any construction and repair work in the capital plan also requires special paid permits. Depending on the scale of such work, you will have to pay at least 50 euros for permission. Global restructuring will require a deposit of 1,500 euros.
In order to conduct business in Madrid, you need to obtain a license to open an office. Moreover, a serious approach to the issue is required with the provision of a floor plan and application of the project, as well as a list of equipment and technical equipment used. documents for it.
Hotel building in Madrid
Since the bureaucracy in Spain is well developed, other types of licenses may be needed. It all depends on the region, as well as on the type of activity chosen. Before you start working, it is advisable to ask the tax office about what taxes you will need to pay. For example, VAT can range from 1 to 16 percent.
Every Spanish enterprise must keep a special visitors' book. During inspections, authorized control services will necessarily check this document.
How to open a business in Spain?
In general, the entire procedure for starting a business is clear and transparent. But, since it requires the implementation of many bureaucratic procedures, problems may arise; the human factor plays an important role here.
First, you need to get a NIE (What is a NIE, read here).
Secondly, you will need to visit the Central Trade Register in Madrid to obtain a certificate of the name of the future company. You can also submit an electronic application on the official website of the registry (waiting time for a response: 2 weeks). The certificate will confirm that the chosen name belongs only to you.
The company name must include the abbreviation of the chosen form of business. Also, in your application, we advise you to offer several options for names at once in order to increase the likelihood of a positive response (some of them may already be taken).
Thirdly, open a bank account and deposit funds into it (at least in the amount of the authorized capital). To open an account, you must present a certificate of company name.
Fourthly, obtain an act of incorporation of the company from a notary.
Must be presented:
- Certificate of company name;
- Personal information about the founders;
- Receipt for depositing the authorized capital into the company's account;
- Charter of the company, etc.
Processing time: 3 – 4 days.
Fifth, pay ITP in the amount of 1% of the authorized capital. This must be done within 30 days after receiving the act of incorporation from the notary.
Sixth, issue a NIF (fiscal identification number). You need to contact the tax office and submit an application form 036. To begin with, you will only receive a temporary number.
Seventh, register the business in the Trade Register. To do this, you will need to provide an act of establishment, a receipt for payment of ITP, NIF. Once your company is registered with the registry, you can apply for a permanent NIF.
Eighth, apply for social insurance and make a request for all necessary permits and licenses.
What else is needed for successful activities in Spain?
At each stage of preparation you need to think through everything carefully. Experts advise taking the name of your future enterprise seriously. It may become recognizable in the future. This is an optional measure, but desirable, since in order to develop a brand, you need to somehow name it and register it in the Register of Commercial Names. In addition to the registered name, the owner of the company may have a commercial mark. It may sound different.
A business plan provides excellent prospects for beginning entrepreneurs. It will help attract partners and investments. It is advisable to draw up the document in Spanish. Experts advise against writing long treatises that will waste time from interested parties.
Example and structure of a business plan
It is enough to draw up a concept for the business you are starting, consider its advantages, build a clear financial scheme and calculate the necessary material investments. An idea of the internal structure of the enterprise must be drawn up.
You need to decide on a source of funding. In Spain, both residents and non-residents can take out a loan from a bank. Loan terms are quite favorable.
What types of companies exist in Spain
SA (Sociedad Anonima)
- an analogue of the Russian joint-stock company (joint stock company). SA assumes the presence of a large number of shareholders. The minimum authorized capital of SA is 60,101.21 euros. When registering an SA company, it is enough to deposit 25% of the authorized capital into the company's current account. To manage a company of this type, special procedures are provided to protect the rights of the founders, for example, the convening of mandatory meetings of shareholders, which is carried out through publication in the press and in the Official Gazette of the Trade Register. SA, unlike SL, can issue bonds and other securities.
SL (Sociedad limitada)
- an analogue of the Russian LLC (limited liability company). SL has one or more owners and, compared to SA, a simpler control scheme. The authorized capital is 3,006.06 euros, and this amount must be transferred to the company’s account in full. The SL company cannot issue bonds; the contributions of the co-founders are not quoted on the securities market.
These two types of companies are the most common in Spain. Both companies have limited liability, which is within the limits of the contributions of the co-founders to the authorized capital, and pay the same taxes.
Start from scratch or come ready
Many Russian businessmen like the idea of growing a business from scratch. It's real. But the main obstacle and problem will be the Spanish bureaucracy, which has come up with a lot of conventions and requirements that are not always clear to the Russians. It would be more promising to purchase an existing business. This will reduce many business risks.
Today, selling a business in Spain is possible in any field. If you try, you can acquire a thriving enterprise with a ready-made customer base, well-known in the region and not requiring large investments.
This case is especially promising for those who are interested in buying a business without claims to any particular area.
Where to begin?
To begin with, before cutting from the shoulder, you need to think carefully about everything. Oddly enough, there is no need to rush anywhere, because it is easy to get burned and lose your invested funds. People who know the language will not find it difficult to deal with all the necessary documents. Others will certainly turn to specialists. This is the first thing you need to decide on: solve bureaucratic problems yourself or let professionals do it.
Second question: “What business to open in Spain?” Here it is already necessary to throw all your efforts into establishing demand in the country. Much also depends on the locality where the entrepreneur will open the business. It is worth noting one feature: in Spain there are no premises with a huge area. There have been cases when a person has already chosen an idea, purchased equipment, documented his business and simply could not find the right premises.
Therefore, you should go there, analyze all the points, “test the waters” and only then open a business in Spain.
Spain is becoming more and more attractive
In recent years, Spanish legislation has become increasingly tailored to the benefits of foreigners wishing to open a small business in Spain. Since 2014, the bureaucratic system has somewhat eased its pressure on entrepreneurs. Modern rules make it possible to open a small enterprise in the Kingdom in just 48 hours.
An entrepreneur can obtain one license for his activities, which will be valid in any autonomous state. Obtaining a license for office space has been simplified. If it does not exceed 500 m2, then the document does not need to be drawn up. Income taxes are gradually being reduced. New projects are being prepared, thanks to which Spanish business will be able to breathe more freely.
Why Spain?
Many, seeing the title of the article, will ask this question. In fact, Russians do successful business in many countries, including France, Italy, Germany, etc. Spain is attractive for its climate and loyal attitude towards foreign capital. In addition, the laws are sacredly respected there, so no one will stop you from starting your own business and developing, unless, of course, this does not contradict the rules.
Also, opening a business in Spain is characterized by the following features:
- you can start your own business without having resident status (this is a person who has registered and lived in the country for at least six months);
- opening a business in Spain is quite simple, there are no problems with registration;
- if a person has his own business in the country, he can obtain a residence permit, which is what a huge number of people strive for;
- The Spanish economy is currently in need of new goods and services, so there is a high probability that the business will be successful.
