As more and more
foreigners choose to relocate Spain, the demand for
diverse products and services continues to grow, creating
a huge market for entrepreneurs who want to
start their own business in Spain. There are however several
fundamental issues that must be addressed in order to ensure
all goes to plan. Download
the guide to Setting up a Business
As an EU citizen you have the right to start a
business in Spain, it is good to remember the market here is very different to that of
the UK. The
first step is to visit
the local police station and apply for an N.I.E. number. This
is an identification number for foreigners and is
primarily for tax purposes. You will need to take along your passport and
complete a simple form.
Depending on the area where you live, the process can
be as short as one day and as long as 9 months. See
the NIE section
for more details
In Spain you
must register your business at both local and national
level. You need to register your
business with the town hall and obtain an opening licence
[Licencia de Apertura] which clearly defines your business
and the way in which it will trade. You will
need to register with the IVA office : The Agencia Tributaria which is the equivalent of the
Inland Revenue office. If
you are not fluent in Spanish contact a Gestoria who will complete
al the forms and file the necessary papers for a
reasonable fee. The
next step is to decide what structure your company will
take which is similar to in the UK with PLC and Ltd
companies. Again the Gestoria will provide expert advice.
Empresa Individualor
sole trader one name only. Sociedad Civilor
a partnership where several
individuals form a business. Sociedad Limitada or
a limited company with
registered shareholders and a set minimum trading capital in
the bank. Sociedad Anonimais a larger company with a large
minimum trading capital and shareholders.
All businesses are
registered with the Social Security Office and as such are
liable for social security payments, these vary according to
the status of the business. This provides you with the benefits of the local health service and
contributes
towards your Spanish pension. [minimum 15 years contribution]
If you are buying an existing business it
is very important that you scrutinise every detail of
the
business to ensure the company has no debts or tax
liabilities that would be transferred with the
business and on to you. Naturally do not part with any money
until this is completed to your satisfaction. Download
Company Tax Info here
