Have you thought about setting up a company in Spain? Do you want to know what is important to have in mind?
If yes, read the 5 tips, which could help you to solve any potential problems along the way.
1. Working hours
The working hours in Spain will most likely differ from others. A Spanish work day usually takes place between around 9am to 1.30pm and then continues from 4.30 pm until around 8 pm. The pause between the hours is the famous Spanish siesta. Further, this implies about a three hour break where most people go home to eat, rest or socialize with their family. Plan for this break when estimating how long a project could take.
If you want to learn more about the working hours, or work life balance in general, please follow this link: https://businessculture.org/southern-europe/business-culture-in-spain/work-life-balance-in-spain/
2. Laws and regulations
Lorena Hernández González, Business Manager at Sopra HR, shares her best tips connected to setting up a company in Spain. One of them is to read about the requirements and rules that prevail in Spain before starting your business. A good idea is to construct a checklist to be sure not to miss out on anything.
Further, there are different rules depending on whether the business originates from a country within the EU or not.
Some basic requirements to ensure according to Gonzáles are:
- Open a Spanish bank account
- Apply for an Entrepreneur VISA (if you are outside of the EU)
- Register with the Treasury and register the company in the Mercantile Registry
- Present a business plan translated into Spanish at the corresponding Consular Office and submit the official application form (EX – 07) completed, duplicated and signed.
In addition to these requirements, Expatica.com refers to the tax aspect:
- Applying for a foreign tax identification number (NIE)
- Get a company tax identification number (CIF)
Lorena Hernández González also mentions the importancy to request two authorizations. The first authorization includes applying for the initial licence of temporary residence. In addition, the second one is centered about self-employment licences. The initial licence is allowed for one year and has to be renewed twice for two years. After these five years, your company will be considered as permenetly established in Spain.
4. Business meetings
When you are setting up a company in Spain, you will most likely have meetings with your stakeholders. Compared to many countries in the western world, meetings in the Spanish business culture can be loud and messy.
They generally tend to be personal and have a more informal structure so don’t be surprised if you get interrupted or disturbed while speaking. Also, be prepared to receive tough criticism, it is not considered rude or impolite to yell at someone during a business meeting. More about business meeting can be found here.
5. Greeting phrases and courtesy
In order to make a good impression in your Spanish business meetings, knowledge of sense and etiquette can be a successful key. Firstly, if you do not know the person you are supposed to meet, do not kiss on cheeks. Instead, shake hands and do so with all participants in the room. Secondly, address the counterparty with their surname prefixed with senor, senora or senorita.
Last but not least, keep in mind that Spaniards tend to have a lot of body contact when they interact. This results in, among other things, that the Spaniards tend to stand close to each other and maintain active eye contact. If you find communication interesting, read more about the subject here.