SETTING up a business in a foreign country can feel like jumping out of an aeroplane.
There’s no two ways about it, it is a brave decision to set up overseas and probably one of the most daunting tasks anyone can undertake.
But just like jumping out of an aeroplane it can be thrilling, and there are several safety nets that can be put in place to ensure a smooth ride.
And while skydivers have a parachute to rely on, budding entrepreneurs can fall back on their Mortgage Broker for advice.
At the Finance Bureau, we offer guidance on company set up, can find the best loan for the client and set up all the necessary insurances to cover a client’s business needs.
Whenever offering future business owners advice there are six key points of advice that we offer to get the ball rolling:
- Choose a name
It may sound obvious but a good business name is the company’s first asset. Once you’ve chosen a name it is important to register that name for commercial use. It is also important to remember that in Spain, businesses can have a brand or trading name different from their official business name.
2) Make it legal
After settling on a name the next step is to choose a legal business structure. This effectively means registering the company as a partnership, limited company, etc (the list goes on). It is important to select the correct structure to match your business’s goals.
3) Fail to plan… plan to fail
It is a cliche but if a good business plan is not in place from day one then the business is doomed from the start. When setting up in Spain there is one other vital thing to consider: language. If you are looking for Spanish investors then your plan needs to be in Spanish. Likewise, if you are looking for international backing you should offer your plan in a number of languages.
4) Finding financing
Adequate funds are key to getting a business off the ground. The reason so many businesses shut is because they underestimate the cost of starting up a company. Available to residents and non-residents, loan conditions in Spain vary depending on the size of the loan needed, the amount of collateral as well as the different lender themselves. In some cases lenders will require full repayment within three years, whereas in others it can be as many as 15. Payments could be monthly or quarterly. Grants are also available on a local, national or international level but are usually reserved for employing in particular disadvantaged areas. At the Finance Bureau we have connections to a number of banks and can find the best loan for your business.
5) Secure a location
Taking into account what type of facilities you need, finding a headquarters is key to promoting your business. The location is as key as the building itself, depending on whether you need public footfall or not.
6) Licence to thrill
Licences and permits in Spain means one thing: lots of paperwork. The Finance Bureau can advise you on what licences you need depending on the type and size of business. Likewise the town hall will be able to provide the latest requirements and all the relevant paperwork.