How to start a business in Spain

Setting up a business in Spain can be an attractive option if you’ve already got a UK entity - or even if you’ve got a new business idea which you’re hoping to put into action soon. Opening a Spanish business isn’t too tricky to do, and can often be sorted out online.

This guide walks through your primary options in terms of business entity type - and how to get your business in Spain started. Plus we’ll introduce Wise Business as a smart solution to handle your business finances in Spain and wherever else your ambitions might take you.

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Doing business in Spain

You can start a business in Spain relatively easily - and UK entrepreneurs can benefit from expanding in Spain and accessing the European market, across a broad range of sectors and industries.

Overall, the Spanish economy is dominated by the services industry, which employs over three quarters of all workers¹. Tourism is the biggest individual field here, along with banking and finance. Aside from service companies, industry is also a big employer, with close to 20% of workers. Agriculture also plays a fairly big role in the Spanish economy, as a major producer of food for local and export use.

There’s plenty of opportunity for businesses in Spain, with options for both new entrepreneurs and business owners who already have thriving companies in the UK. Exactly how you set up your Spanish business will depend on your specific circumstances - we’ll look at the most common and popular ways of starting a business in Spain next.

Spain company register

Incorporating a company in Spain can be done in person or online, with a relatively straightforward process². You can do this yourself or use a company formation service which will charge a fee if you’d prefer to have a no-hassle option.

Spanish entity types can include³:

• Sole trader or sole proprietor
• Limited liability company (SL)
• Newly Created Limited liability company (SLNE)
• Stock Corporation (SA)
• Jointly owned company (CB)
• Partnership
• Workers' Owned company (SLL)
• Cooperative (S. Coop)
• General partnership
• Limited partnership
• Branch office
• Subsidiary

As you can see, some of these options are familiar in the UK, but some have different features. If you’re unsure which entity type you’d like to use in Spain it’s worth getting some professional advice as different business structures have their own advantages and disadvantages.

Sole trader or sole proprietor

As in the UK, being a sole trader is often the easiest way of doing business in Spain. You will be personally liable for any financial risks taken as part of your business operations. If you work in some professions you may need a licence.

Limited liability company (SL)

A limited liability company is good for businesses with few partners, and requires you to hold at least 3,000 EUR in share capital. You can register a SL in a single owner name or in the names of several people - liability is limited to the invested amount.

Newly Created Limited liability company (SLNE)

As the name suggests, an SLNE is an entity structure aimed at new companies, with a streamlined application process compared to a regular SL. This entity type is often used by startups and can have up to 5 partners.

Stock corporation (SA)

This is a publicly floated company which requires a stock holding of 60,000 EUR or more, although this doesn’t necessarily all have to be paid immediately at the time of founding the business.

Jointly owned company (CB)

In a jointly owned company, partners work together and share full liability for the business and any debt incurred. This is somewhat like a partnership structure and doesn’t require the registration of a separate business entity.

Workers' Owned company (SLL)

A workers’ owned company has 3 or more owners, who must all also work for the company. The majority of the company’s capital must be owned by workers in the company.

Cooperative (S. Coop)

As with a workers’ owned company, a cooperative in Spain is an entity which is owned by members and operates for the mutual benefit of the owners. In this case, the members may not necessarily directly work for the business.

General partnership

In practice, a general partnership in Spain can be similar to a jointly owned company. You can form a general partnership with 2 or more individuals, and any partner shares the liability for the business and all its debts.

Limited partnership

Limited partnerships must have both general partners who own the business and are liable for its debts, and limited partners who are liable only to the extent of their paid in capital.

Branch office

A branch office in Spain could be an option for you if you already have a UK business. Spanish branch offices don’t have their own legal personality, but are effectively part of the parent company which are run independently.

Subsidiary

If you set up your Spanish business as a subsidiary of your UK business, you’ll have limited liability for any costs incurred in Spain - which is not the case with a branch office. You’ll need to set up your Spanish business under one of the other business entity forms, such as an SA or SL, depending on what works best in your specific situation.

Starting a business in Spain - Step-by-step

You can set up a business in Spain online or in person. The process may vary a little depending on the entity type you select and how you choose to get your business incorporated. Bear in mind that having a business in Spain isn’t enough in itself to give you the right to live and work there. You’ll still need to get all the relevant visas and permits lined up in advance - so make sure you have plenty of time to get everything in order.

Here are the steps to set up a business online in Spain as an example:

1. Get an NIF (Spanish tax code) for yourself, which is usually the same as your NIE which can be obtained in Spain from the Directorate-General of the Police and Civil Guard or at your local Spanish diplomatic mission or consular office in the UK
2. Visit the online Entrepreneur Service Point to complete the required paperwork and reserve a company name
3. Open a business bank account
4. Visit a notary public to approve the company deeds and notify the tax authorities if needed
5. Declare your investment using Form D-1A, submitted to the Foreign Investment Registry (RIE) of the Ministry of Economy, Industry and Competitiveness
6. Notify the regional ministry of labour that you’ve opened the workplace

Setting up a business in Spain - FAQs

Let’s walk through the common questions and answers about how to set up a business in Spain.

How much does it cost to start a business in Spain?

The costs of starting a business in Spain depend entirely on the entity type you pick and whether or not you’re a Spanish resident already. It’ll cost you about 10 EUR to apply for your NIE if you don’t have one as yet, plus you may need to pay share capital for your business depending on the entity type. There are also likely to be legal costs, including a notary for the registration process - and any fees you pay to a company formation specialist to support you in setting up your business in Spain⁴.

Check below the current conversion rate between GBP and EUR.

Wise Business account is a handy tool for UK business expanding abroad. Once you set up your business in Spain you can easily convert British Pounds to Euros to hold money on the Spanish currency, receive Euros with your account details or set payments like a local. All conversion is done based on the mid-market exchange rate with low and transparent fees.

Get started with Wise Business 🚀

Is it easy to start a business in Spain?

If you want to open a company in Spain it’s good to know the process can be done primarily online if you’d like to - making the formalities relatively convenient. You’ll still need to work through a set process but it does mean that starting a business in Spain is pretty easy compared to in some other countries.

Is Spain startup friendly?

Yes. Spain boasts over 11,000 active startups, particularly in technology industries⁵. If you’re thinking of taking your startup to Spain it’s worth checking out the Rising UP⁶ programme which can help you work with a local partner in Spain, as well as offering support on visa application, networking and visibility once you’re set up.

Check our guide on how to do international market research for a startup

How to start a business in Spain as a foreigner?

Once you’ve decided to open a business in Spain the main thing you’ll need to sort out is your own visa and work permit. There are some options for support here, particularly if you’re launching a startup and may qualify for an entrepreneur visa. Once you’ve checked your own eligibility, opening a business in Spain as a foreigner should not be too tricky or time consuming - and you can always work with a company formation service if you’d prefer to hand over all the admin to someone else.

Manage your international company's finances with Wise Business

Check out Wise Business as an easy way to help your company expand beyond borders.

Wise Business accounts can hold and exchange EUR and GBP, as well as a selection of 40+ currencies, with the mid-market exchange rate and low fees from 0.43%⁷ whenever you need to convert between currencies. You’ll get local bank details for the UK, the euro area and a selection of other major economies, to get paid conveniently by customers or through PSPs like Stripe and marketplaces like Amazon.

Wise Business accounts also help you save time so you can concentrate on running your company - with features including multi-user access, batch payment tools and cloud accounting integrations. Here’s how to register a Wise Business account in just a few simple steps:

1. Download the Wise app or head to the Wise desktop site
2. Tap Register and follow the prompts to apply for a business account
3. Add your personal and contact information
4. Upload the documents needed which are detailed online and in this Wise Business account requirements guide
5. Pay the one time fee to register your account and get a linked payment card if you need one
6. Once your account is verified you can start transacting - your account will be live in the Wise app, your physical card will be posted to you, and you can get a digital card right away for mobile spending

Get started with Wise Business 🚀

Starting a business in Spain can give you lots of options for trading both in Spain and in Europe more broadly. It’s not too tricky a process to get started, and there’s also plenty of help out there if you need it. Use this guide to get started - and check out Wise Business as a good way to manage your money across pounds, euros and more.

Sources used in this article:

1. Santander - Spain economic outlook
2. Invest in Spain - Setting up a business in Spain
3. Spain entity types
4. Guide to business in Spain
5. Invest in Spain - startups
6. Rising UP
7. Pricing/fees: Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information

Sources last checked Dec 20, 2023