Starting a company, hiring employees or applying for a licence. In Spain, it is not always immediately clear where you need to go, which documents you need or who can actually help you move forward.

“We’ve already tried to sort it out ourselves, but we keep getting sent from one authority to another. Nobody seems able to clearly explain exactly how the procedure works.”

This is what a new client recently wrote to us in their first email. And, honestly, it is a story we hear all too often at OTIS Legal Group. Anyone doing business in Spain, or planning to do so, soon discovers that no everything runs as smoothly as they may be used to.

You prepare carefully, research the necessary procedures and find out which steps you need to take. But when you contact the relevant authority, you discover that another document is required, one you had not been told about. Or you are informed that you must first go somewhere else to complete another procedure, only to be referred elsewhere again once you get there.

Sound familiar?
Doing business in Spain: Plenty of opportunities, but challenges too
Spain is an attractive country in which to do business. It offers numerous opportunities for foreign companies, whether you are setting up a business from scratch or expanding existing activities into the Spanish market.

In practice, however, things can turn out quite differently from what you might expect in theory.

In the Netherlands and Belgium, we are used to procedures being relatively straightforward and to being able to find clear and reliable information online about the steps we need to follow. In Spain, this information is not always as easy to find. In addition, procedures may vary depending on the autonomous community or municipality.

Understanding which procedures apply and where they need to be completed is not always straightforward. Requirements may also vary depending on the region, municipality and type of business activity.

For example, you may have to deal with the Spanish Tax Agency (Agencia Tributaria), Social Security (Seguridad Social), the Commercial Registry (Registro Mercantil) and various municipal or regional authorities.

Although each authority has its own responsibilities, the different procedures do not always fit together seamlessly in practice.

The result? Businesses can lose valuable time trying to resolve matters they thought had already been taken care of.

Setting up a company is one thing. But what comes next?
Take an international entrepreneur or company looking to establish a Spanish limited liability company (Sociedad Limitada, or SL). Setting up the company itself can often be arranged without too much difficulty. But the process does not necessarily end there.

Depending on your business activities, you may also need to complete additional registrations, apply for licences or comply with specific administrative requirements before you can fully operate.

And what if you want to hire employees in Spain?
You will need to take into account the applicable Spanish employment legislation, the different types of employment contracts available in Spain, the relevant collective bargaining agreement (convenio colectivo), Social Security regulations and other employment law obligations.

Or perhaps you have found commercial premises for your business. Naturally, you will want to know whether you can carry out your intended activities at that location and which licences, permits or notifications may be required.

Each individual step may seem manageable. But taken together, the process can require considerably more preparation and coordination than initially expected.

“But the Other Authority Told Us Something Different…”
In our experience, the frustration is not necessarily caused by the rules themselves. Most entrepreneurs understand that procedures need to be followed and that certain documents are required when doing business in another country.

The frustration mainly arises when nobody can clearly explain exactly which steps need to be taken.

You call several times and receive different answers. You make an appointment, only to be told when you arrive that you need to go somewhere else. Or an application is delayed because a document is missing that you did not realise was required. Meanwhile, you simply want to get on with running your business.

Of course, this is not always the case. Many procedures in Spain run smoothly, and an increasing number of formalities can be handled digitally. But when you do get stuck, finding the right way forward can be difficult, particularly if you are unfamiliar with the Spanish administrative and legal system.

Good Preparation Makes All the Difference
Does this mean that doing business in Spain has to be complicated? Certainly not.

But knowing what to expect before you start can make a significant difference. Which steps need to be taken? In what order? Which documents are required? Which authorities will be involved? And, perhaps most importantly, which rules and requirements apply specifically to your business? By identifying these issues in advance, you can reduce the risk of unnecessary delays and unexpected complications.

And if a problem does arise, it helps to have someone who not only understands the legal requirements, but also knows how things work in practice in Spain.

Because there can sometimes be quite a difference between knowing what needs to happen from a legal perspective and actually getting it done.

Running a Business Is Challenging Enough
At OTIS Legal Group, we assist international entrepreneurs and companies with their business activities in Spain. From setting up companies and drafting contracts to employment law matters and other legal issues that arise when establishing or operating a business in Spain.

We know the Spanish legal landscape, speak the language and understand the challenges international clients can face when dealing with an unfamiliar legal and administrative system.

And perhaps most importantly, we believe in working alongside our clients, clearly explaining what needs to be done and helping them take the right steps. Because doing business in Spain should be about making the most of opportunities, not spending your time trying to work out which authority or office you need to contact next.

And if you do find yourself being sent from pillar to post? We’ll be happy to help you find the right door.

Plans in Spain? Let’s make it possible!