How is a ‘startup’ started?

Spain ended 2016 with a total of 2,633 ‘startups’, which is 1% more than in 2015, according to the Startup Ecosystem Overview report prepared by the Mobile World Capital Barcelona (MWCB) foundation.

Barcelona is the main nucleus of startups in Spain with a concentration of 28.4%. Within walking distance is Madrid with 27.1% of startup records. In third position, Valencia, which despite being in the top-3 brings together only 5.2% of emerging companies.

At a European level, Barcelona and Madrid are two of the ten European cities with the greatest attraction for entrepreneurs in Europe. However, London, Berlin, Paris and Amsterdam are ahead of the Spanish hubs.

As for countries, Spain ranks as the fourth technological destination at European level for technological talent. Spanish cities are a perfect ecosystem for entrepreneurs and their emerging businesses.

Before opening the business, it is necessary to carry out a feasibility study of the idea and answer the first questions that arise to take the final step and register with the official bodies in the safest way possible.

The first questions to solve are what need, problem or desire does your idea solve. At this point it is important to remember that ideas are not protected by the Intellectual Property Law. It is necessary to monitor who knows the business idea that is being raised.

The next step in developing the idea is managing the audience the startup is targeting and conducting competition research. The sector that most agglutinates this type of companies is electronic commerce with 24%, according to the report by the Mobile World Capital Foundation.

Ten steps to start

basic advice

1. Is my idea viable? It is necessary to ask whether it meets a need of society.

2. Ideas are not protected by the Intellectual Property Law, they cannot be registered.

3. Carry out a market study of the sector. Correctly choose which is the least saturated.

4. Get financing. Spanish startups raised 502 million euros of investment in 2016.

5. Request for negative certification of the name in the Commercial Registry. With it, it is proven that there is no other company with the same name as yours.

6. Payment of the bank deposit required by law according to the type of company chosen.

7. Creation of the articles of association before a notary public and signed by all the partners.

8. CIF application. This number supposes the tax identification of the company and is issued at the Tax Agency.

9. Payment of property transfers tax. It consists of the payment of 1% of the share capital.

10. Registration in the Mercantile Registry.

According to this same study, the same percentage of new companies, only in Barcelona, ​​were related to this sector. The experts in accelerators in ‘startups’ consulted by this newspaper point out to look for the characteristic that differentiates your product from that of the competitors.

Difficult financing

The average investment per startup has tripled in the last three years, reaching 710,000 euros in 2016, far from the 200,000 euros in 2014. Although the flow of money has increased, financial analysis is one of the key points to lengthen the future business life.

Spanish startups raised 502 million euros of investment in 2016, which is 12.8% less than the 576 million obtained in 2015. Again, Barcelona is the Spanish city that leads investments with 56% of the total, followed Madrid with 173 million euros.

Bureaucratic procedures

Once the business plan has been reviewed and established, the next step is to make the company official and begin with the bureaucratic procedures to start working. The first place to visit is the Commercial Registry, since this public office is in charge of issuing the request for negative certification of the name. With it, it is proven that there is no other company with the same name as yours.

The next steps are the payment of the bank deposit in a financial institution of the required share capital according to the type of company you have chosen. Next, the creation of the statutes and the articles of incorporation signed before a notary by the partners of the company in order to start the company.

Then you have to request the C.I.F. This number supposes the tax identification of the company and is issued at the Tax Agency. It is provisional for the first six months and then the final one is already obtained. It only has a limit and it is necessary to request it 30 days immediately after the constitution of your company.

In the same period, the capital transfer tax must be settled. It consists of the payment of 1% of the share capital contributed when creating the company and paying it in the Tax Office where your Company is domiciled. Lastly, return to the Mercantile Registry to register the company.

About Aheesan Anbalan

Aheesan Anbalan is leading this blog writing for Day-To-Day. He has mastered the art of writing since his childhood, and with time, this has developed to be an enormous talent. He loves reading books, and by book, it means of all the genre. He is a very knowledgable person. Being a student of computer science it has become easier for him to understand the objectives and the expected results of this web blog.

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