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Business in Madrid
How to set up a company in Madrid as a foreigner

Madrid is one of Europe's best places to start a business: a large market, talent, and an administration that's increasingly friendly to foreigners. If you're coming to launch your project, here's the roadmap of the essential steps, jargon-free.
The documents you need first
Before any company paperwork you need your tax ID. For foreigners, the starting point is the NIE (Foreigner Identity Number) and, if you'll be self-employed or a director, registration with the tax office and Social Security.
- —NIE — essential to open an account, sign and register.
- —Spanish bank account — to pay taxes and contributions.
- —Digital certificate — lets you do almost everything online.
Self-employed or a company: which to choose
The two most common routes:
- —Self-employed (autónomo) — quick and cheap to set up; ideal to start invoicing soon.
- —Limited company (S.L.) — more structure and limited liability; for projects with partners or investment.
Many people start as self-employed and form an S.L. as the project grows. An advisor (gestoría) saves time and avoids mistakes here.
Steps and approximate timelines
As a guide: the NIE can take a few weeks depending on the consulate or appointment; self-employed registration is almost immediate once you have a NIE and certificate; forming an S.L. has more steps (company name, deed before a notary, registration at the Companies Registry) and usually takes a few weeks. Confirm current requirements with a gestoría, as details change.
Key takeaways
- The first step is always the NIE.
- Self-employed to start fast; S.L. to grow with partners or investment.
- The digital certificate lets you do almost everything online.
- A gestoría saves time and avoids mistakes.
Frequently asked questions
Frequently asked questions
Do I need residency to start a company?
You can be self-employed or a partner with a NIE; some profiles need a work or residence permit. Check for your nationality.
How much does being self-employed cost?
There's a reduced rate for new self-employed workers in the first months; check the current figure.
Can I do it all online?
With a digital certificate, almost everything. The NIE and the notary usually require attendance.
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