How To Create A Company Or Start A Business Step By Step [Examples]

If you have a business idea and see that it is your time to start a business, you may have doubts about how to start a business.

To start a company from scratch, the first thing you have to do is arm yourself with courage and follow the steps that I will explain. Don’t worry if you doubt how to do it.

The procedures to create a business are not complicated but unknown.

When we start for the first time, we are so novices that everything seems complicated.

The physical company must also have an online presence, which represents the services and image of your business.

There are grants to create a company from scratch and subsidies, which facilitate the start of your venture.

By reading this post, you will know how to create a company step by step, all the paperwork we had to process when creating my online company, Vatoel Social Media.

let’s start,

How to create a company from scratch step by step

Then I will explain how to start a company, but first, I wanted to list all the steps so you have a global vision.

1. Initial SWOT.
2. Business plan and viability.
3. Choice of legal form.
4. Sign up for Social Security.
5. Declaration of registration in the business census.
6. Economic Activities Tax – IAE
7. Register in the commercial register.
8. Help to start a business.

Now we will see in detail all the steps to start a business.

How to set up a company: Feasibility plan

We start from the basis that you must have performed an initial SWOT analysis and a minimum viability plan for your business idea.

To make sure your business will work and that if you are going to crash, you crash as little as possible.

In other words, a business plan will help you prioritize different strategies and determine how to address each of them.

1. Initial Data

The data is an initial analysis of the internal and external characteristics of your company.

(It can be applied to any project or even on a personal level).

It is simple but essential to make strategic decisions, and its result allows you to see your differential value against your competitors, among other advantages.

This analysis is composed of four quadrants that are:

Weaknesses: Internal factors that limit the possibilities

Threats: External factors that may make it difficult for the company to achieve its objectives.

Opportunities: External factors that can give the company a competitive advantage.

Strengths: Internal factors that the company has a competitive advantage and that will allow it to overcome threats

2. Business plan and minimum viability

The viability plan is a document that gathers the economic and financial aspects of the business and foresees whether the company to be created will have minimum profitability in the future.

It allows us to know some of the fundamental variables of the project or the total amount to request external financing.

And a company’s business plan is a complete document that analyzes all the procedures and strategies necessary to start a business.

3. Legal form

When starting a company, the first step is to register.

Based on your economic activity and interests, you must decide what legal form you are going to adopt. Most entrepreneurs are initially self-employed.

You can opt for several types of legal form, according to the needs of your business.

There are some more types, but with these to start, you would have:

Individual Entrepreneur (Autonomous)

A freelancer is a natural person who performs a professional, commercial activity on his behalf and through a company.

When creating a company as a freelancer, he responds with his assets for the possible debts generated in the development of his business.

When paying taxes to the Treasury, you must pay VAT and IRPF quarterly.

The self-employed person acts as an intermediary between the Treasury and the final consumer since they must pay to the Treasury the difference between the VAT that they have passed on and charged to their customers and that which they have borne for their purchases from suppliers.

You can apply for grants and subsidies, both when you register and consolidate the company (at 3 years old as a freelancer).

Limited Liability Company (SRL or SL)

A limited company can be incorporated at least with one partner, with a Capital that must be equal to or greater than € 3,000.

The partners do not respond to possible debts, the liability is limited to that contribution.

This figure is suitable for small and medium enterprises since the partners are involved in the permanence of the project.

Taxation is governed by corporate tax, and depending on income, net profits are taxed at a fixed rate of 25%.

Cooperative Society

A cooperative is a company formed by at least three partners, voluntarily, for the realization of business activities.

The minimum capital to constitute it will be the one that has been set in the statutes of the cooperative and has limited liability as if the company were Sociedad Limitada SL

Taxation: Corporation tax.

Community of Goods

It is the simplest formula of association between freelancers for a common project.

It is a private contract between freelancers, at least 2 partners, in which the activity of the business, the percentages of participation of each partner, and the administration thereof are detailed.

Without minimum capital, their responsibility is unlimited (they respond with their present and future assets) and solidarity (they support each other).

The community as such does not pay taxes for the benefits obtained, but the members do so through the Income Tax for Individuals ( Income Tax ) as a return for economic activities.

The disadvantage is almost always that they are excluded from requesting aid and subsidies.

Procedures to register a company

1) Sign up for Social Security

In the General Treasury of the Social Security, when you register your company, you are assigned a number also called a contribution code.

All companies to start their activities will have to be registered in the Social Security prior to the start of them.

There is a flat rate for entrepreneurs, which consists of paying a fee of € 60 (before € 50) for the first 12 months of self-employed.

The following 6 months, a reduction equivalent to 50% of the fee and the following 6 months a reduction of 30%.

Until you get to pay 2 years after the company is released, the full autonomous fee.

2) Declaration of registration in the census of businessmen-Tax Agency

Before starting a business activity, you must register in the census of businessmen, professionals and retainers (Model 036), or its simplified version, model 037) and communicate to the Treasury certain personal, fiscal and business data.

This document does not only serve to announce your start of the activity, but you will also have to complete it each time any of the data indicated therein is modified.

It is, therefore, a census declaration of high, low and modification for businessmen, professionals, and retainers.

3) Tax on Economic Activities-IAE

The IAE or Tax of Economic Activities is a tribute that must be paid when creating a company in Spain (Model 840).

This model is the one used to file declarations of registration, cancellation or variation tax.

This is a tax-managed by Local Haciendas and municipalities, although the State uses the data collected in it to control other taxes such as personal income tax or VAT.

4) Register the company in the Commercial Registry

The Mercantile Registry is the one in which the acts related to individual businessmen and commercial companies are registered.

You must register the company in the Provincial Mercantile Registry, in the office of the Mercantile Registry of the same province where the company is domiciled.

In the case of the individual entrepreneur, it is necessary to present:

-High in the Census of Businessmen and Professionals.

-DNI or NIE.

Trademark

When we create a company with a name, a logo, and a story, the least we want is for someone to copy us.

It is, therefore, advisable to register the brand and these distinctive signs.

The process is carried out through the Spanish Patent and Trademark Office.

There are several corresponding forms and fees, depending on what we are going to register, each one regulated by its identical legislation:

– Patents and Models. Law 24/2015 of July 24, on Patents

– Distinctive Signs Law 17/2001 of December 7 of Trademarks

– Industrial Designs Law 20/2003, of July 7, on Legal Protection of Industrial Design

– Topographies of semiconductors Law 11/1988, of May 3 on Legal Protection of Topographies of Semiconductor Products

Aid to create a company in Spain

Another important factor to consider when creating a company is the money we have for it. From what budget we start and how are we going to get that liquidity or how to finance the project. All grants and subsidies are welcome to start.

Depending on your business model, you can apply for the grant. In this guide to aid for business creation in 2020, you have all the updated information.

Tips to open a company from scratch

Nowadays, it is counterproductive to have a physical company and no Internet presence.

Something essential to start with would be a web page linked to social networks, where our audience is located.

So if you want to start a business, I recommend having defined a marketing strategy for your company.

He thinks that 80% of businesses close in the first year, and that is because they are not visible.

And without visibility, without knowing our business, it is complicated to have a company that works.

For this, some of the things that I consider essential are:

Web page

In recent years, the use of new technologies has forced companies to change the way they do business.

According to the study by IAB Spain, it says that currently, 71% of Spanish Internet users between 16 and 65 years old acquire their products online, that is, 20.3 million people, which represents a growth of 4.6% compared to the year previous.

SMEs can significantly increase their sales by having a useful website.

Your business will be in operation 24 hours a day, 365 days a year.

Therefore having a website or an eCommerce complementary to your physical business will help you see your company grow.

Create a web page that is irresistible to your client.

Consider the price of the WordPress website. WordPress is the most used and recommended content manager.

A prevalent mistake is that we usually start with web design platforms in an economic plan, which later turns out to be that the only thing they bring us are problems. Put yourself in the hands of one of the digital marketing agencies that exist, and you will see how your project will soon grow.

On the Internet as in life, whatever you do, do well, but wait.

Professional Social Networks

Social networks are a very appropriate channel to connect with the public of your business and to communicate with them.

They allow you to analyze the competition in your business.

They favor the visibility you need when creating a new company.

They influence the purchase decision if it is an online store and, of course, to loyalty to your customers.

By creating, for example, a Facebook fan page or a company profile on Instagram, you can boost your company’s branding, brand image, and advertising.

All these advantages of social networks will make your business grow.

Google My business

This tool is handy for doing local SEO. When creating a company, the advantages of Google My Business are, for example:

-Improves visibility and with it the local SEO.

-Through the reviews, they grow your credibility as a company and therefore strengthen your brand image.

-You can spy on your competition.

If you have a crazy company, I recommend you to create a listing in Google My Business.

Email Marketing

Email remains one of the most effective channels and a greater return on investment.

If the product you sell is complicated and expensive, the decision process of the person is likely long.

With which, having a mailing strategy in which to educate the potential client and increase trust in us, can be very profitable to close sales.

It is one of the strategies that give us the best results.

Digital Advertising

Do you remember that 80% of companies do not reach the first 3 years of life?

The big fault of it is because they don’t invest in advertising.

If a business is not visible, how will they know it?

The main advertising channels are Google Ads and Facebook Ads, but depending on the sector in which your company is, there may also be others quite fascinating.

Training for entrepreneurs

When starting a business, the desire and attitude are fundamental, but to compete in the market, we will need something else, how to recycle our knowledge.

We realize that we lack the skills necessary for our project to achieve success.

There is no magic formula that determines the success of a project, but the appropriate training.

At the Marketing and Web School, you will find all the necessary training to achieve your goals.

Support points for the creation of companies in Spain

You can advise your confidence gesture or you can do it yourself.

To help you define the legal form, there is the General Directorate of Industry and Small and Medium Enterprises

It also exists for online procedures: the Information Center and Business Creation Network (CIRCE)

Circe is an information system that allows you to carry out the procedures of incorporation and implementation of certain commercial companies in Spain electronically.

If you are in Andalusia, there are Andalusian Entrepreneurship Centers, the CADE. Where you will find the support of a technical team of specialists in the creation and development of companies, to boost your business idea.

In the Business Creation centers, in addition to advising you there is a program called a business incubator, where you are assigned a physical space, depending on your company, be it an office or industrial building for a year and you do not have to pay rent.

How you will see this is going to come from scandal and is a very positive initial help, to see how to create your company.

Conclusions

I hope you have become clearer, how to create a company step by step

You can pray to all the Saints, to be successful, but I recommend you better that you go to the nearest Business Creation Center to advise you.

In summary, the feasibility plan for your project, the registration procedures in social security and finance that we already explained. Apply for a grant, because of the “No” already has it and it starts.

Well, the biggest failure is not having tried.