Procedures to Open a Business: Detailed Guide
Looking for how to open a business and procedures for it? Then you came to the right place.
Surely you are thinking that it is complex and quite messy to be able to open a business due to tasks such as the famous endless efforts, registering, paying the relevant taxes, asking for licenses, etc. But the truth is that, if you ask yourself, what procedures do I need to open a business? You will see that you will not have any problem when starting your new store because the processes you have to carry out are simple.
Nowadays, carrying out this type of “paperwork” is very easy, since we have professionals in the sector, such as managers or lawyers; key pieces to start your business and that will give you the support you need.
On the contrary, if you wish, you can also carry out all the procedures through the single window that public administrations have. With this, you will speed up the procedures when opening your new business.
Also, there are a series of grants for new entrepreneurs and freelancers who want to launch into creating their own business. We will develop this point later and in depth.
Today, at Cyzotech we are going to teach you all about the procedures that are necessary to start your new business, what licenses you need, the steps you have to take, advice and what type of company you can start.
Can you come with us?
What legal procedures are needed to start a business?
Surely you are wondering what procedures I need to start a business. And the truth is that you can do it in person or telematically from your town hall.
To be able to do this, you have to fill out a series of forms and attach a technical file on the premises and its facilities. Of course, it must be a document produced by a technician specialized in the subject.
Read: How to Open a Gym Franchise: Gym Franchise Business Plan
From here, to be able to open a business in Spain (legal formalities will be different for different countries, please do proper research before taking any step), you can do it in 3 different ways . We tell you below:
1. You can do it yourself
As you are going to be the general director of your own company, you are going to have to carry out all the necessary procedures to have the permission of your city council on duty to carry out your activity.
To do this, you must collect the following information:
- Local address.
- Cadastral reference of the place.
- Useful surface of the premises.
- IAE section with which you will carry out your activity.
You can call your town hall and tell them that you want to open a new business. They will inform you or give you an appointment with the urban planning management who will communicate the requirements to start a business in Spain (legal formalities will be different for different countries, please do proper research before taking any step), payment methods, taxes, etc.
To do this, you have to fill out a form with which you will obtain a registration receipt that will allow you to carry out your commercial activity within three days. This is a great advantage to open a business in Spain (legal formalities will be different for different countries, please do proper research before taking any step) and you only need the digital certificate of a natural or legal person.
3. Choose a specialist
To obtain a commercial license in Spain (legal formalities will be different for different countries, please do proper research before taking any step), you need a series of technical documents about the place where we are going to carry out our activity.
A project of facilities, a technical certificate of compliance with regulations or the plans of the premises are issues that must be supervised by a specialist technician in the field.
What type of company can I start?
This is a key point when it comes to knowing what type of company to open. You have to be very clear about where you want to go and, above all, the legal form you want to take advantage of: you can be autonomous as a figure of an individual entrepreneur or a mercantile company such as: limited liability company, cooperative, etc.
However, if what you want is to know what formalities I need to start a business , it will be more convenient for you to register as a self-employed person , regardless of whether there are several partners who are going to contribute a certain number of capital and pay taxes for the income of natural persons.
If your business thrives in the way you had thought, then it is when you can form a mercantile company when there are tax benefits and begin to pay tax for corporation tax.
10 steps to start your business
The legal form that you are going to use does not matter, if it is one or the other you are going to have to carry out a series of formalities and procedures. In the following lines, we are going to teach you the requirements to start a business, the laws that exist to open a business, among others. Pay attention and don’t lose detail.
1. Choose the legal form
As we have already seen in the previous section, the legal form will determine which company you want to carry out. You have to decide if you want to become a limited company, a cooperative, among others.
2. Request negative certification
To request it, you have to go to the Central Mercantile Registry for the negative certification of the name of the company. With this, you can prove the exclusivity of your society so that no one else can have your name. If you ask yourself the question, what procedures do I need to start a business ?, you can know that you have the power to carry out your procedures in person with the corresponding form at the Mercantile Registry offices, by mail or through the internet.
3. Your capital
This is where the money factor starts to gain importance. First of all, you are going to have to deposit an amount X of money in a bank. This amount will vary depending on the share capital required. For example, in limited companies the minimum amount is 3,000 euros, while in public limited companies, the capital cannot be less than 6,000 euros.
4. Obtain the NIF or CIF
The tax identification number is obtained from the Tax Agency. First you will obtain it provisionally by presenting form 036, a copy of the deed of the constitution and a copy of the statutes. Then you will get the final one in a period of about 6 months.
5. Create the company
This is one of the easiest steps to take when you are going to open a new business. All you will need is the presence of a notary and the partners who are going to sign the constitution of the new company.
6. Commercial register
Like any new company, you will have to register as a company before the commercial registry to have full legal competence. If the question of what procedures do I need to open a business is going through your head ?, you will conclude that you can carry out the procedure at the Mercantile Registry office where your company is domiciled.
7. Sign up for the IAE
Do not forget to register for the Economic Activities Tax with the business activity that you are going to carry out. It is very important that you do not get lost and register, especially so that you do not have problems and incur possible penalties.
8. Company books
You will also have to have a company book, in which you collect: an inventory book, annual account book, and a newspaper). This can be processed at your provincial Mercantile Registry office. They will give you an official certification stamp that you must put on all the pages of the books.
9. Trademark registration
Another key point when establishing your new business, registering your brand. They can be distinctive stamps such as words, phrases or images. It is important that you register your brand so that no one else has it. Making the Mercantile Registry of your society does not guarantee you to have your brand protected.
10. Get going
Now that you have taken all the necessary steps to be able to establish your new business, having an idea of what procedures I need to open a business , you will only be left to get started and offer your services.
Depending on the type of activity you are going to carry out, you will need some permits to open a business. If you are going to have workers at your disposal, you will have to communicate it to the Provincial Directorate of the Ministry of Employment and Social Security and obtain a book where the pertinent inspections are collected.
9 Tips to start your business
We have already seen the steps you have to take to open a business and make it work. But, in the business world, not only is that enough to get it started, it takes something more for you to earn money and make your brand recognizable.
Next, we propose you a guide to open a business, in which we are going to give you a series of tips so that you can develop your activity in the best possible way:
1. Find a great idea
The first thing is to have an idea, that germ, the basis of all business. The best ideas are those that respond to a need and that contribute something not only to the market, but to society in general.
From here, you have to find the profitability of that idea. If you stop to think about, what procedures do I need to open a business? , you will realize that first of all you have to find that idea and develop it, that fits what you know how to do because you are going to spend a long, long, long time working on that idea.
2. Analyze the market and your competitors
Do not throw yourself crazy, do not be visceral and embark on an adventure that may be too short. First of all, you have to do a little research on which sector you are going to move to, what your competitors are and what they offer.
Based on all this research, determine which are the failures and weaknesses that both the market and your competition have. In what you can improve, what you can offer in the sector that is innovative, all this will help you improve and create a recognizable brand.
Read: 13 Best Business Ideas in India for Successful Startup
However, it is also convenient that you analyze the possible threats that exist in your environment and if you can overcome them. For this, it is key that you carry out a SWOT analysis, basic for the creation of new companies.
Like every entrepreneur who begins to take his first steps in the business world, you are going to need partners to give you a push. Doing it, you have many advantages but you have to make sure that these partners have your same concerns, goals and values, in other words: people you can trust.
If you want to know what procedures I need to open a business , the first thing is not to fall into the mistake of hiring the typical friend who can keep your accounting. Try to avoid that, friendships are very good, but they should not be mixed with business. Always surround yourself with people who are their best.
4. Create an elaborate Marketing strategy
A good marketing strategy can make a lot of difference. You can start by establishing who your target is, what your dissemination channels will be, how regularly you will post content on your blog or the development of Inbound Marketing.
If you are not going to develop an online business, you will have to determine how you want to attract your target with discounts, gifts or raffles.
5. Your business is not a game
Building a business is not a game, or should not be for you. You start a business to profit from it, to generate money, to earn a living, not to play.
If you don’t dedicate all the time in the world to your business, then you are still validating the idea before jumping into the pool. What this will mean is a sweet transition to the life of an entrepreneur, that if you think about it in your head, what procedures do I need to open a business? You have to know that this life is very hard and that it requires a lot of dedication.
Never see your business as a hobby, even if it only brings you extra income. You have spent time and money on it, it does not deserve to be treated as a game that does not mean anything to you.
6. Make the best website in the world
If you want to gain visibility, you are going to have to create the best website in the world to make a place for yourself among the competition. It is also extremely important that you buy the domain as soon as possible, it does not matter that you do not have the web.
That you buy this domain and register your brand, does not mean that it is registered in the online world, you have to take that detail into account.
Remember that when you go to buy your domain, you have to take into account that it is not the same .es, .like .mex, for example. The determination of the domain indicates the country in which you are located.
7. Hire a hosting
A hosting is a server where the website of your company will be hosted. There are hosting services of various prices and most are managed from the United States and do not work in Spanish, which is a handicap.
If you are wondering, what procedures do I need to open a business? , and you don’t speak English well, this is probably not your best option. On the other hand, if you manage yourself well enough it can be a very important option to consider.
8. Create powerful and eye-catching branding
Branding can encompass logos, designs or corporate colors. It would be ideal if you not only incorporate these elements into your website, but also do it with cards, flyers or at your premises.
It is key to include colors that identify us, that are striking and that associate them with our brand and give us notoriety. You can also extrapolate all this to social networks and manage to capture potential customers with your personal brand.
9. Take time from anywhere
The creation of a project to open a business requires many hours and dedication. You have to be clear that if you parallel your business to another activity, it will cost you more and you will have to dedicate much more time to it.
However, if you are in a position to dedicate all the time in the world to your business it is one more advantage. Do not relax, even so you will have to be fixed to the point of dedicating your time, that if in your head the question is hanging around, what procedures do I need to open a business? You have to take into account that you are going to have to sacrifice your free time if you want your new project to succeed.
Another aspect to take into account, and no less important, are the distractions that we may have. We can have sentimental distractions, work, home or any of them, we have to know how to remove them from our heads, have a clear and clear mind to be able to carry out our activity.
Are there aids for entrepreneurs?
Surely you have the whole article wondering if there is any type of help for all those entrepreneurs who want to start their business. I don’t make you suffer anymore, the answer is yes, there are some aids for entrepreneurs.
Right now, there are many aids to start a business in our country. Many of them are framed within the new Self-Employed Law of 2017.
One fact to keep in mind is that for young people there is a bonus throughout the process, up to 36 months, so that they can carry out their new business project.
However, it is quite important that you do not forget to check the dates and deadlines of the calls to receive the aid. If you are currently asking yourself the question, what procedures do I need to open a business? You will know that there are also grants for innovation or for the development of technological ideas, unprecedented in Spain (legal formalities will be different for different countries, please do proper research before taking any step).
Do not forget to review the requirements to start a venture. Even if you have a good financial solvency, it never hurts to put yourself in the hands of consultancies, banks or lawyers so as not to take a last-minute scare regarding sanctions.
Throughout the entire article we have made a summary of everything you have to take into account, in terms of procedures and advice, to start your new business.
As you have seen, these procedures are not complicated at all, you just have to take them into account and not skip any step, especially because if you do so two things can happen to you: or that your business does not go ahead because it does not meet the legal conditions, or Good because you are committing crimes and you are sanctioned for them.
However, to start a business from scratch, it will not be enough just to comply with the law and be an exemplary entrepreneur, you will have to put into practice some tips that we have been teaching you throughout the article so that your business prosper. In short, the next time you wonder in your head, what procedures do I need to open a business, you just have to take into account everything we have told you and apply it. In this way you can have a legal business, with a future perspective and with a recognizable brand in the market.