How to set up your business in Spain if you are a foreigner
19 January, 2023duguech
With the recently approved Startup Law, Spain has become one of the most attractive European countries to set up your business in Spain if you are a foreigner.
If you are a non-EU citizen, that is, a non-EU citizen, the first thing you should do is apply for a residence and self-employment authorization or an entrepreneur’s visa.
This will depend on your business plan because there are important differences between the two visas. An innovative company in the technology sector is not the same as a restaurant.
Duration and renewal
The initial authorization is granted for one year and, if the business works, for two years and then for another two years. After these four years, the residence and self-employment authorization will be permanent.
This authorization is limited to the work activity you initially present. If your business or company does not work, or you decide to close and you want to continue living in Spain, you will have to apply for a different authorization.
You can create a Limited Liability Company (SL), a Public Limited Company (SA), or even a branch of an already established company.
Choosing the right figure will be the key to apply for the authorization. It is not the same to have a sole proprietorship as to be self-employed. The self-employed worker can be self-employed and administrator of a company; or be only self-employed, but not necessarily administrator of the company.
This is an important point to apply for both the entrepreneur visa and the residence and self-employment authorization. It must include an analysis of the product or service, as well as a financial analysis, a market study, specific sources of financing and economic projection.
In addition, you must specify the target audience, the communication and marketing plan and the value you bring to the Spanish market. It is essential that you can demonstrate that your academic and professional profile matches your business idea. That you have sufficient training to carry it out.
Requirements to create a company in Spain if you are a foreigner
- Be of legal age.
- Not to have a criminal record in the last five years.
- Not to be a “rejectable” person in Spain or in any other country with which it has agreements.
- Have the necessary academic training and experience for the project.
- That the future business has the capacity to generate employment and is of economic interest for Spain.
- To have full medical insurance coverage in Spain.
- Proof of sufficient resources for food and lodging,
- To prove sufficient resources to make the necessary investment to start operating.
- Depending on the type of business, comply with the regulations in force regarding the necessary opening requirements.
If you are a foreigner and want to set up your own business in Spain, there is an ecosystem of entrepreneurs and infrastructures aimed at attracting and retaining international talent.
But keep in mind that the conditions are not the same for EU foreigners as for non-EU citizens. Depending on your business idea, you will have to apply for a specific visa to carry it out.
At Duguech&Dip we can help you with the appropriate visa process for your project. In addition, we can design the previous feasibility study, financial forecast, and profitability of your business. Call us and we will study your case.
Since legal advice must be tailored to the specific circumstances of each case, and laws are constantly changing, nothing on this article should be used as a substitute for the advice of competent legal counsel. The content on this article is offered only as information. And does not constitute solicitation or provision of legal advice. You should always consult a suitably qualified lawyer regarding any specific legal problem or matter.
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