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Business in Madrid

How to set up a company in Madrid as a foreigner

7 min de lecturaHogar4Actualizado June 2026
How to set up a company in Madrid

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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