Many UK-based business owners are keen to relocate their operations to Spain. This is no surprise when we consider numerous benefits such as a relatively robust economy, tax-based incentives, and seamless trading agreements with various regions throughout the EMEA. However, the 2016 Brexit has changed the ways in which such a transition will occur. Let’s look at the basics, as well as why securing the services of an international law firm is often the most viable solution.
The First Steps
It is wise to begin by highlighting a handful of criteria that will need to be met by those considering a venture into the Spanish economy. For example, anyone who is over the age of 16 has the right to internationalize a business here. It is also important to provide proof of your identity, as well as where you are currently residing in Spain. As corporate lawyers in Spain say, the necessary documentation will be the following:
- A passport
- A national identity card (such as a Spanish “Tarjeta Communitaria”)
- A driver’s license
- A government-backed voting card
When providing your current address, here are some common options to consider:
- A tenancy agreement
- A mortgage
- A bank statement
- A driver’s license
- A recent utility bill
Note that these forms of identity might also be required in the future, so it is always wise to keep them close by. Furthermore, make digital copies, as these can be invaluable assets in the event that physical documentation happens to be lost, damaged, or stolen.
Basic Tax-Related Documentation
One of the first steps involves obtaining a Spanish tax number (known as an NIE number). This is now needed before a Spanish bank account can be opened, and it is used by the authorities to identify the business in question. Note that an NIE was not necessarily required before the Brexit. Applications for an NIE number can normally be made by visiting a local Spanish police station, although a certificate known as an “empadronamiento” (a document confirming that you are residing in Spain) could also be needed.
Obtaining a Mercantile Registry Number This is often abbreviated as RMC number, and it refers to the Spanish term “Registro Mercantil”. A Mercantile Registry Number is required by all businesses and individuals who intend to carry out commercial operations in Spain. In some ways, the Mercantile Registry is similar to the Companies House in the United Kingdom.
Note that obtaining an RMC number is obligatory, and most experts recommend attending to this concern while simultaneously obtaining other documents (such as your NIE number). The central RMC office is located in Madrid, although branches can be found in metropolitan locations such as Barcelona and Malaga. Once the process begins, it will normally take up to three days to complete. Be sure to speak with a representative to obtain additional details, or to confirm what types of documents will be required.
Bank Accounts
Let us now assume that you have obtained a valid NIE. You will then need to establish a Spanish-based bank account. Current regulations stipulate that 3,000 euros must be contributed to this account when it is first opened. These funds are then used to obtain a certificate from the bank that recognizes the business. There can still be times when the finer points are confusing, and keep in mind that it is not always possible to consult an English-speaking banker. Many business owners therefore choose to retain the services of experienced corporate lawyers in Spain. These professionals can dramatically expedite the entire process and ensure that no mistakes are made along the way.
Additional Tax Obligations All businesses that operate in Spain will also have to obtain what is known as a CIF (Certificado de Identificación Fiscal) number. This is another way that the authorities recognize the organisation, and it is essential when discussing annual tax obligations. Keep in mind that businesses involved with importing or exporting are also obligated to obtain an EORI (Economic Operations Registration and Identification) number. This number is recognized throughout Europe, and it is needed before shipping goods abroad.
The Deed of Incorporation
Once all the previous recommendations have been satisfied, the business owner will need to create a company deed (a document outlining its scope of operations). The documentation mentioned above alongside a Spanish tax form (known as form 036) must be presented to a local notary. The deed can thereafter be validated. It is once again advisable to work with a corporate lawyer throughout this final stage. While incorporating a business in Spain will require a bit of work, there is little doubt that the subsequent opportunities are well worth the effort. This is the very same reason why countless entrepreneurs from abroad have already followed the recommendations outlined above. Of course, do not hesitate to consult with an expert when in doubt. This is the best way to ensure that nothing is left to chance.
