05 Jul How to Launch a Legally Covered Business in Barcelona (in 5 Steps)

For anyone slightly northern, getting a chance to live and work under the mild southern sun seems like a dream come true. And for some time now, the opulent and perspective region of Catalonia, as well as Spain in general, has been very welcoming to those daring enough to try themselves in a completely new business environment. As a number of skilful and able entrepreneurs-to-be rapidly rises all throughout Barcelona, we can’t help but ask – is the Catalan capital a new Mecca for business enterprises?

Is It Possible and Do You Have What It Takes?

Controversial or not, the growing influence of the web has made our lives easier in so many ways. Its most playful brainchild, digital nomadism, has taught us a lesson on the importance of cutting our roots every once in awhile and starting anew from wherever we like. Aside from being absolutely viable, working remotely has opened a world of possibilities for diligent jobbers.

Still, such a lifestyle is not for everyone. Taking the best from both worlds, enthusiastic businessmen on the rise are starting to pack their bags and migrating somewhere warmer and opportune. All around the world, megalopolises like Barcelona are exploding with inventive start-up ideas.

Even though the Catalan capital is somewhat hostile to jobbers, it offers plenty of possibilities for fresh business ideas. While online-based businesses that target audiences from all over the world are still more likely to succeed, locally developed businesses are not without a chance either.

Niches related to fashion, gastronomy, party organization and arts & crafts are always in demand in the idiosyncratic business environment of Barcelona, which means having a unique set of talents, a spark of creativity and a bit of braveness is more or less enough to get you noticed. To return to the question from the beginning – if endowed with professional audacity and armed with an original idea, Barcelona will most certainly support you on your way to the corporate top.

However encouraged, don’t rush buying the ticket just yet. Instead, take some time to shape up your start-up plan and obtain the necessary paperwork. Here’s what you need to get your new Barcelona-based business up and running.

Step 1: Start from Your Home Office

If already devised, your business idea will need a bit of moulding before eventually being realized. It’s probably for the best that you start working on it from home, and have a full-scale and operational plan prior to moving. To make it foolproof, go online and learn more about how to write a solid business plan. Of course, you’ll need to do some thorough research, and examine the legal regulations, the specific market of Barcelona’s business world, as well as the potential competitors and clientele.

Unless it’s being developed under the wing of an already registered enterprise, like Airbnb for instance, your business will need to be legally covered. Still, that doesn’t stop you from launching your web presentation even before the actual company is open for business. If possible, build a website from home, draft a marketing strategy and start engaging your leads before taking a big leap and changing your address.

Step 2: Become a Legal Citizen

Once you finally arrive, don’t let the city sweep you off your feet with its succulent tapas, potent sangrias and magnificent casas, but rather rush off to the authorities and acquire the mandatory requirements needed for becoming a Barcelonian. Aside from a passport, which you already have, you’ll need these as well.

1. Foreigner Identification Number (Número de Identificación de Extranjero)

Otherwise known as NIE, The Foreigner Identification Number is a precursor for any outsider planning to stay in Spain for longer than 3 months. Moreover, Número de Identificación de Extranjero is a document every foreigner needs in order to undertake any kind of commercial action in Spain. In case you’ll be buying a property – whether for the purposes of your business or for your personal needs – this document is obligatory for that as well. It’s being issued by the General Administration of the State (Administración General del Estado), and it usually takes them up to 2 weeks to get it made.

2. Community Registration Certificate (Certificado de Empadronamiento)

By getting registered as a member of the local community of your choosing, you’re obtaining a Community Registration Certificate. Similar to NIE, Certificado de Empadronamiento legally allows you to live on Barcelona grounds and enjoy the privilege of its citizenship. To avoid the long queues in front of your district’s local bureau, apply for the document online.

Step 3. Obtain the Mandatory Business Licenses

After getting settled and cosy in your newly found Barcelona home, the time is about right to start launching your business. Here’s what you need.

1. Certificacion negativa de la denominación social

The first certificate your Barcelona-based business will require is Certificacion negativa de la denominación social. Its purpose is an official proof of your company’s name being legally protected, and it needs to be renewed every 6 months. The cost of the initial document being issued (the process usually takes 2 days) is 16.25€.

2. Tax for Economic Activities (Impuesto de Actividades Económicas)

Even though you’ll probably find that Barcelona really is a new business Mecca, unfortunately, the Catalan capital is not a tax-free zone. To get your taxing regulations in order, you’ll have to pay the Tax for Economic Activities, after which you’ll obtain your Codigo de Identificacion Fiscal (CIF) – the tax identification code. The place you’ll need to be looking for is Delegación Especial de Economía y Hacienda.

3. A Payment System

Owning your own unique tax identification code pretty much requires you to have a corporate bank account as well. You can open it without additional costs, and it will serve you as a business trade payment system later on.

4. Official Signatures and Stamps

However uncostly, acquiring paperwork needed for the launching of a start-up company in Barcelona doesn’t come without a catch. To get your documents officially valid and ready for the business opening, you’ll need to pay an additional cost for notary signatures and stamps.

Step 4: Set Your Grounds

In a city as far-spreading as Barcelona, finding a functional space for operating a business is not so hard. You can even have fun with it and explore multiple options! If buying a property is not a financial course of action your budget will be able to sustain, consider renting one out. There’s a hot new culinary trend rising in Barcelona that avoids large costs of owning a restaurant.

As a temporary service, pop-up eateries use different venues to prepare and serve food, which is an opportunity you can exploit if working inside the niche. Other types of businesses that require a permanent residence are in need of a particular license to get started.

• Municipal Opening License (Licencia Municipal de Apertura)

After you’ve registered your business venue in the City Hall (Ayuntamiento), stop by the City Planning Department (Departamento de Urbanismo) and apply for the Municipal Opening License (Licencia Municipal de Apertura).

Step 5: Get Your Human Resources Secured

Before opening up for the public, start taking care of your employees. They will have your back for a long time, so be sure to make their working status official and their working environment safe.

1. Register Your Employees

To make your manpower legally covered, remember to register your employees at the Social Security General Treasury (Tesorería General de la Seguridad Social) and the National Employment Institute (Instituto Nacional de Empleo).

2. Apply for an Insurance

Mandatory or not, a social insurance is a moral obligation of every entrepreneur. To properly insure your business and, more importantly, your employees’ welfare, don’t forget to register for social services. In Barcelona, their taxes are around 25€ per month.

With an abundance of possibilities for every hard-working businessman, Barcelona certainly is an ultimate destination. Be courageous enough to try your luck within the prolific market of the Catalan capital, and don’t forget to relish in its unique culture, openhearted people and delish fare.