In Spain’s startup ecosystem, the Foreigner’s Identity Number (NIE) is an indispensable document for any foreign entrepreneur who wants to carry out activities in the country. This article explains what the NIE consists of, its relevance for entrepreneurship and how to obtain it.
What is the NIE and who needs it?
The NIE (Número de Identidad de Extranjero) is a unique number assigned to foreigners who, without having Spanish nationality, need to carry out legal, fiscal or economic procedures in Spain. According to the Ministry of the Interior, it is necessary for all foreigners who, due to their economic, professional or social interests, must interact with the Spanish system.
For entrepreneurs and startups, this means that any foreigner who wants to incorporate a company, sign contracts, open a bank account or hire employees in Spain will need a NIE. This applies to both EU citizens and those from countries outside the EU.
Importance of the NIE for Startups
The NIE is especially relevant in the field of startups. To create a company in Spain, the NIE is necessary from the first steps, such as registration in the Commercial Registry, to tax formalities such as obtaining the CIF (Tax Identification Code). It is also essential for financial transactions, signing notarial deeds and registering intellectual property.
In startups where foreign capital plays an important role, the NIE is not only necessary for founders, but also for investors who want to participate in financing rounds, as well as for key employees and collaborators from other countries.
How to obtain the NIE
The process for applying for a NIE varies depending on the applicant’s country of origin. EU citizens have a relatively straightforward process. They can apply for a NIE by presenting their passport at the foreigners’ offices or at designated police stations. However, for non-EU citizens, the process may require additional documents, such as a visa or residence permits, depending on the type of activity they are going to carry out in Spain.
The basic procedure includes:
- Fill in form EX-15 available on the website of the Ministry of the Interior.
- Present your passport and justification for your application, such as an employment contract or a document proving your intention to set up a business.
- Pay the corresponding fee, which varies according to the applicant’s situation.
Processing time may vary, but in general, the NIE can be obtained in a matter of days or weeks, depending on the workload of the foreigners’ office and the documentation submitted.
What happens if you do not have the NIE?
For foreign entrepreneurs who want to start a startup or invest in Spain, not having a NIE can cause significant delays. Without this document, it is not possible to formalise the creation of a company, open a bank account, or sign rental or employment contracts.
Conclusion
For any foreigner wishing to start or invest in a startup in Spain, the NIE is an essential requirement. The agility in obtaining this number can make the difference between an efficient company incorporation process or facing delays that affect the operation of the business. As a law firm specialising in startups, we help you manage this and other key procedures so you can focus on what matters most: growing your business.
This publication does not constitute legal advice.
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