Setting up a Business in Spain

Setting up a business in Spain is definitely not as easy or as straightforward when compared to other developed European countries. Businesses require licences and in some sectors these are very highly regulated and if a certain business model does not already exist then it might well be because it is not possible to operate such a business in Spain and not because it has not previously been considered. So it is always important speak with or indeed engage a Notare or better still a Solicitor before embarking on the route to setting up a new business in Spain, just the same as it would be inconceivable to buy a house without first having house valuation or building survey first.

It is a must to get a really good solicitor

Mistakes or lack of research can often prove very costly and in some cases result in businesses being shut down on the first day of opening or restrictions imposed such that the business is no longer viable. So it is a must to get a really good solicitor and if buying a property for the business make sure that it has had a recognised building survey. It is therefore absolutely essential to seek independent legal and accounting advice. Many make the mistake of relying on business brokers (i.e. intermediaries or agents selling businesses) but they will still need to engage a solicitor and/or surveyor to undertake proper due diligence and building survey. Remember many businesses selling are selling for the obvious reason they themselves can not make a success of the business.

A buyer will need these professionals

Setting up a business in one's home country is difficult enough but doing so in a foreign country carries an even greater risk, so it is vital that a purchaser put themselves in the position of being able to get advice and assistance in all areas through qualified solicitors, accountants, architects and surveyors. A buyer will need these professionals to ensure:

Due diligence and/or feasibility studies
Business structure (sole trader, limited company, branch or rep office)
Incorporating a Spanish limited company
Operating a business in Spain
Leasing or buying commercial premises/ building surveys
Business taxation
Trade mark registration
Property Valuation

It is only by engaging the right professionals will setting up a business in Spain get off to smooth start; allowing the business owner to focus upon managing his business and not falling foul of regulation.