Starting a business in a foreign company may be a dream come true but the whole process comes with a bunch of nerve-wracking situations.
While several entities can help you with the legal processes and other formalities, what comes as the major relief is the fact that Spain is a country that favours foreign investment. They provide an ideal platform for new businesses and entrepreneurs to establish and grow.
Here, you will find the main reasons why Spain is ideal for entrepreneurs to start their businesses.
Why is Spain ideal for starting a business?
Being a significant economy in Europe as well as in the world, Spain already has a stronghold on the business front. The cultural difference can only be a minor issue here in Spain as there are several positive factors to start a business.
1. Ideal location
The primary reason is its strategic location where the weather is pleasant with not too hot and not too cold, which suits people from both west and east equally. The country is easily reachable from Northern America, other parts of Europe, and the Middle East. The fact that it is part of the European Union opens up a larger market for the business.
2. Support right from the base
Spain has passed various laws in recent times that have made the entire process of starting a business here, easy and hassle-free. Right from the visa application, investment, and the ease of conducting activities in the country.
3. Favors FDI
Laws in Spain have been refined and reformed to accommodate startups by promoting Foreign Direct Investment. A business that is in any stage of its progress can establish its roots here. They provide autonomy to the local regions to help develop the areas and at the same time provide national diversity in terms of the economy while improving the employment state of the region.
Spain flaunts an excellent network of infrastructure in all areas and levels. Right from the roads to the technology, they are well established. The high-speed internet and maritime economy are the most favourable for all types of businesses.
How to process your entrepreneurship in Spain?
- The formalities for an entrepreneur, a sole trader, partnership business or limited company, are different with various provisions for each of these types.
- All of these types of business need to be registered, acquire the permission and respective tax identification number etc before you can apply for a visa.
- The required visa is in the form of a work permit which is issued by the Spanish Embassy in the respective countries.
- Another necessary step is to open a business account in the bank. Equally important is the notarization of the deed of the registered company.
It may sound easy to start a business and in a way, it is easy as long as you follow the proper procedures with all valid papers. The difficult part would be the administration, taxes, social security and employment.
- It is important to keep track of all the accounts as they may be requested for verification. The taxation depends on your type of business and it differs from one another.
- You may expect a tax break for the initial two periods. Later it will be gradually increased to the standard levels depending upon the profit levels.
- Only very few companies get an exemption from the VAT while some companies get a lower rate. But generally, most of the companies do have to pay their VAT.
- Most importantly, when you employ people, you must be well aware of the employment regulations, which are strict in Spain. There are 40 working hours per week and 14 payments (monthly + an additional two in July and September) per year.
Starting a business In Spain is easy but the ground plan is not the same for all types. It would be easier and advisable to have the support of some kind of global experience when you are starting a limited company. So, keep your plans ready, evaluate the market and trends, study the legal and otherwise formalities well in advance before you dive into action.