Madrid, Barcelona or Valencia are important entrepreneurial hubs that attract all the elements that can make a business successful. This HR & Payroll Service includes the following components: This service costs 25 per month for the first employee and 20 per additional employee. Growing a company is a complete adventure. Ideal infrastructures, worldwide talent, and an entrepreneurial ecosystem makes cities like Barcelona or Madrid your best choice when deciding where to start. I want to sign up to the newsletter!
This service includes the following components: Anyone undertaking a business activity via a limited company will require a local tax and accounting service. But, should you later add employees to your expanding business then you will want to add the Fully Managed HR & Payroll Service. When processing your application, you must provide a series of documents, including the following: While additional branches and subsidiaries dont need to file accounts on the business register, they must pay income tax and submit quarterly VAT returns through their NIE number. Business accounts vary in cost, and in lieu of a fee, some will require minimum deposits. I am buying or selling property abroad. It would depend on your role on the company: Yes. This helpful guide covers everything you need to know about starting a business in Spain. Miguel speaks English fluently. The only requirement is that you are a legal resident. They must be sent to the Corporate Register of Spain (Registro Mercantil) in order to check their availability. That is why we created this complete guide: to solve all your doubts. Alternatively you can incorporate your company without traveling to Spain. Many times we mistakenly assume that the word autnomo and self-employed are the same. If you are starting up a business in Spain alone, you can also choose to set up as a freelance professional (profesionales autonomos). We are grateful for his dedication and excellent service. VAT is generally charged at 21%, although companies in some industries can pay a lower level of either 4% or 10%. Save my name, email, and website in this browser for the next time I comment. it was very informative, quick and straight to the point! Required fields are marked *. Tax breaks are available for new companies. This is why we highly recommend you to contact us in order to let us help you with the overall process. All rights reserved. Businesses must keep records of their accounts and order books, which can be requested for scrutiny by government bodies such as the tax authority. Your email address will not be published. Also, as a resident Of Spain, you will be liable for personal taxation in Spain on worldwide income which will mean that any income derived from the profits of the company will be subject to Spanish income tax anyway and you will also most likely need to hire two sets of professionals to manage your fiscal responsibilities, thus increasing your cost base. If you dont have a Spanish bank account, find out how to open a bank account in Spain. partners or shareholders who work in the company: it would depend on their percentage of participation in the company. Unlike in some other countries, there is no threshold when VAT kicks in; rather, it is applicable on all profits. And its wrong. Spanish Legislation Related to Foreign Investments, How to Purchase Shares in a Spanish Company, EUR 3,000 is the minimum share capital that must be deposited in a local. From the first contact all the way through the purchase of the property. A more laid-back approach, for example, can result in deadlines overrunning and meetings stretching late into the evening. This website uses cookies to improve your experience. Nevertheless, you can ask the registry for an additional name to be used in other non-legal situations or purposes. You can access our article on how to become an autnomo in Spain in order to clarify even further. Initial Set-up according to client's requirements, Production of Employee Pay slips (printed at client site), Management & Payment of Employer & Employee Social Security Contributions, Registration and Removal of Employees from Social Security system, Registration with the AEAT (Spanish Tax Authority) and the Social Security System. For limited companies, the process is significantly different. Because yes, you may have your work permit as a self-employed worker. We also use third-party cookies that help us analyze and understand how you use this website.
Please advise how can I start the whole legal procedure to begin with? This step should not take longer than two hours. Finally, you will need to return to the tax office to obtain thepermanent Corporate Tax Identification Number (CIF)after the completion of the incorporation process. Hence, you are fully liable for any possible debt the company has. So get ready to learn the. Nevertheless, the specific steps you should take in order to successfully have your company start running are not that clear. As there is no need for a minimum share capital for this type of entity, the entrepreneur will focus on the costs related to its formation. VAT returns, Corporation Tax, Income Tax, Non-resident tax, any other tax obligation with any national tax authority: National/Regionals/Local. If you want to register your trademark officially, here you will find a complete guide on how to do it. Hello, Why? Upon agreement on the specific course of action to take, the tax lawyer will implement and manage the investment. Spanish business culture may differ considerably from that in your home country. The main types of business structure are as follows. Why? If you want to set up a limited company in Spain, there is a defined path to follow. Why? The country has good logistics and infrastructures that can help your business project succeed. The application process is much faster and you can get your response just after 20-30 days. For whom is this structure? In that case, it would be much better if you could get in touch with one of our business lawyers so we can analyze the situation more carefully, as there is no straightforward answer and the process will differ depending on the exact situation. Several types of limited company structure exist in Spain. Why are we mentioning this? How to get your business visa: work permit to set up a company, Which type of company should you choose? Applying for company tax and identification numbers. This will be the official name of the company, which will appear on your invoices and other documents. Before starting the process of constituting a company, we must decide which will be its type. You will be liable for any and all losses incurred by the business. Nevertheless, from the day we sign the set up of the company at the notary, they will give you a provisional, Now that you have obtained the deed from the notary, you should go to the, Register that documentation, getting the deed stamped by them, You need your company to be identified with the tax authorities. However, getting your head around the key regulations and implications of setting up shop can help give you a head start and boost your chances of success. Because the constitution process is exactly the same. Because yes, you may have your work permit as a self-employed worker. All professionals must hold professional indemnity insurance. To find out more or to opt-out, please read our Privacy Policy, which has also been updated to reflect the same. That said, the perception of Spain as having an old-fashioned or twee business culture isnt completely accurate. EE9s2ugOz)BRNGOLE6Mw~~/Wisconsin-VH4D-VH4-Engine-Repair-Manual-_1.jpg)
He speaks English fluently with a certified Advanced level. Depending on the type and size of the business that you are planning to set-up, a limited company can often be the appropriate choice for the same reasons as are the case in your home country flexibility and limited liability. The Self-Employed Set-Up and Tax Service is ideal for an individual sole trader who is planning to work alone. I highly recommend our lawyershe was very professional and thorough and her communication was superb throughout. thank you! To be able to advise on such investments ranging from relatively straight forward to highly complex - requires a great deal of experience and ability to carry-out due diligence, understand the impact of tax and accounting rules and corporate law in general, to ensure that your investment is safe and productive. If you are considering setting up an offshore company, i.e. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. You just need to get your NIE and EU registry certificate, and then you can simply move to the constitution part. If a few people are setting up as a partnership and want to limit the amount of personal liability and give the business a more formal structure, they can set up as a limited partnership (sociedad comanditaria) instead of a general one. Our English-speaking consultants will answer your questions about how Spanish law affects your business and then make sure you comply with Spanish legal requirements relating to legally constituting a business. Initial discussion with a lawyer to understand the project you have in mind, Preparation of a report on the steps to be taken to initiate the activity and the likely costs involved, including an evaluation of the likelihood of success, Upon agreement, initiation of the application and the steps to obtain the licence, Follow-up services to include full tax and accounting service. You will be self-employed and work within a simple structure implying little bureaucracy in which, basically, you are paid with the profits of your business. The owner will have to file their VAT returns (IVA), and several other periodic declarations are usually applicable. It would depend on several factors (such as: initial share capital, number of partners, extension of the incorporation deeds, ). In this specific case, if you are the one opening and running the branch in the Spanish territory, you must be a resident in the country. Miguel is a highly qualified - and regulated - economista, similar to a chartered accountant in the UK. Service levels agreed in advance and guaranteed. Public liability insurance is vital if you are running a business. You can, Nevertheless, if you are a non-EU citizen; you will need to, Nevertheless, it is crucial that you understand the requirements before starting. This is largely due to the Spanish government invoking minimum financial requirements for those looking to incorporate in Spain. Nevertheless, the specific steps you should take in order to successfully have your company start running are not that clear. Non-profit companies in Spain will fall into two categories: foundations and associations. Where the business shall deal with the public, licence applications tend to be quite arcane and complex. Once completed the registration process, we will draw up all other corporate documents required by the Commercial Companies Code. Lets say, for example, that you would like to open any type of classic brick-and-mortar store; like a cafeteria or local supermarket. You will face 8 steps in order to set up your company, but it can get a bit tedious sometimes. Therefore, if your business gets into debt, you are personally liable. | Quiero suscribirme a la newsletter. This is called a no-name coincidence certificate and is available from The Mercantile Registry (RMC). You can send an email to [emailprotected] and we will help you! There is a generalized misconception that we must tackle here. From offices in Valencia City and Castelln de la Plana, Inmaculada provides expert legal advice and assistance to English-speakers in Property matters, Contract Breaches/Debt Recovery, Family law and Business formation and bookkeeping service. Whats different is the need to become a legal resident in the country, which creates an extra prior step you will need to realize. And, finally, the last step: visiting your local social security office to register your newly created business. It was great to have the advice and support when buying a property abroad.". [View on Google]. Companies must also keep a book of minutes containing details of measures agreed at Annual General Meetings (AGMs). Fees specified in advance and legally guaranteed. Initial discussion with a tax lawyer to understand the project you have in mind. During your appointment, youll need to present the 036 or 037 form, your NIE, passport and IRPF form. How to do business, Sole trader vs autonomo (self-employed), How to set up a company in Spain as an expat, The 8 steps to starting your business as a foreigner, Establishing the Shareholders of the Company, Going to the notary to sign the public deed, Get legal assistance from our business lawyers. Banks such as BBVA, Bankia, Santander, and La Caixa all provide business accounts. Your email address will not be published. I regard his fee structure very competitive and reasonable and he made appointments for me with Insurance Agencies in order to fulfil the health insurance requirements for Spain--when we have committed to pursue our legal status here in Spain we will instruct his Service to act on our behalf.". So if you just invested 3.000, that is the maximum amount it can be requested from you in case of indebtedness. Because afterward, if you would like to sell the shares of the company or divide the capital of the firm for the different shareholders, you will have a much more difficult time than if you used cash. Inma helped me to buy a property in the Valencia region. He specialises in business and property matters and over the years has assisted many English-speakers relocating to Spain who wish to establish their businesses in Spain and also get assistance with property investment. Hello!
The Spanish government is also pressing forward with a decree to cut a gender pay gap of around 14%. In those cases opening a branch in Spain is the right path. Help you to choose the right business name. Sole traders will pay tax on a quarterly basis at the standard rate of income tax; they will need to fill out a tax return at the end of each financial year. Complete management of the companys accounts. Open Closed-Ended Investment Fund in Spain, Create Open-Ended Investment Fund in Spain, Articles of Association of a Spanish Company, Set up a Company in Insurance Sector in Spain, Set up a Company in Construction Sector in Spain, Set up a Transporting and Storage Company in Spain, Establish an Advertising and Marketing Company in Spain, Open a Company for Rental and Leasing Activities in Spain, Set up a Business for Repair of Transport Equipment in Spain, Relocate your UK Company to Spain after Brexit, The Costs of Starting a Business in Spain. Apart from setting-up and managing the payroll system in Spain for new businesses - and existing ones - this service includes processing new employee contracts, handling Social Security obligations as well as communications with this department as well as advising on the most appropriate corporate structure that will allow you to minimise tax exposure. For expats, starting a business in Spain can open up lots of opportunities. If you make the application in person at your local tax office, bring the original and a photocopy of your NIE (numero identificacion extranjero). But we are not talking about the business model or specific project. . All rights reserved. We are just going to briefly talk about the main ones: Probably the best option for small companies, as, In terms of taxes, as a sole trader, you will pay. Starting a business in Spain doesnt always need to be an arduous process. To find out more about Spanish employment rules and rights, check out our guide to working in Spain. They can provide a wide range of benefits to the company and company principals. So, Just in case you dont know where to start, here you will find a list with. In those cases, as the project is not innovative enough (its something that already exists), the residence permit that will allow you to set everything up is the self-employed worker visa (a regular work permit). I would like to receive occasional legal & tax updates relating to Spain.
"The service was excellent. If you want to set up a branch of your company, you will need to present a notarized power of attorney and a copy of the companys public deed of incorporation. You can contact us at [emailprotected] and we will answer as soon as possible. Applications for a NIE can be made at a processing office for foreign citizens (Oficina de Extranjeros) at a national Spanish police station (comisara). Fees as recommended by the Local Professional Body. They will also have the responsibility of deducing the required social security contributions from their employees salaries each month. In Spain, there aredifferent company structures, which are defined by the Commercial Code. Partnerships work similarly, with each partner being held responsible for paying their own income tax. There are two possibilities to get this number: Once you have your NIE number you need to obtain whats called a certificate of uniqueness. And our accountants will be in charge of your taxes. For painters, web designers, For those individuals whose activity does not require a company for its undertaking, as the work freelancers do. Obtaining all necessary documents, permits and approvals. Nevertheless, according to your country of origin, the process can get more complicated. The Spanish territory is the ideal landscape for foreigners from all around the world to start their own company. One of its main advantages is that it does not require any type of initial investment. While it might take some time to adjust to business practices in Spain, there is no need to be put off. Just in case you dont know where to start, here you will find a list with 25 business ideas to start in Spain as an expat. Traditional charities which accept donations from the public will generally fall into the foundation category. If you are a Spanish national, you will have a NIF rather than a NIE number. Then, the notary will register the company in the Company Registry. There was several delays on my end, and she was nothing but patient and kind during the entire process. In that form, it is asked whether you are a sole trader (empresa individual) or a self-employed individual (autnomo). The country offers a big and diverse enough market to enable different types of business ideas to stick. Foundations that turnover more than 2.4m or have more than 50 employees need to undergo an external audit annually. c. In that sense, the main benefits of starting your company in the Spanish territory are the following ones: No matter if you are a foreigner or a local citizen of Spain, everybody is allowed to start your business in the country. The monthly fee can vary depending on the number of transactions that are invoiced by the business. Now that you have obtained the deed from the notary, you should go to the Spanish Tax Agency (Agencia Tributaria) in order to: Bear in mind that you will start paying taxes once when you start your activity. With all the previously mentioned documents (NIE number, the bank certificate and the certificate from the Registro Mercantil), you now need to go to the notary to sign the public deed of incorporation. Company annual return (abbreviated accounts: balance sheet, profit and loss statement, annual report), Ongoing updates on any legislative changes affecting the area of the Company Activities. He lived in Ireland for more than two years to improve his English language skills and his experience as a lawyer. You can find out how to apply for an NIE with our full guide to the Spanish NIE number. Nevertheless, that is something we do not recommend. Sole traders and partnerships are more suitable for smaller businesses that wont have a large annual turnover or employ many staff. I am looking to acquire a yacht in Spain under the Spanish Flag. This is, without any doubt, the most popular firm structure in the Spanish territory. You will now need to apply for the deed of incorporation to establish your company. The costs for setting-up an ordinary limited company (3,000 euros initial share capital, with 1-4 shareholders usually are: The process usually takes 4-6 weeks, once the shareholders obtains their NIE; in order to become a shareholder, every partner will need a foreigners ID number (NIE). 3,000 (initial share capital). After you have obtained a tax code and the certificate of no-name coincidence for a limited business, you will need to open a business account with a Spanish bank and make a deposit of 3,000. Some banks and business advisory companies will offer special packages to help you set up the particulars of opening a new branch in Spain. This step lasts about one to three days depending on the notary. This is the official document that states the key details of the company (name, address, details of directors, board members, shareholders, etc.). He or she will be responsible for business investments, profits, and losses alike. Business address (whether it will be only for correspondence or you will really make your business there). By choosing I Accept, you consent to our use of cookies and other tracking technologies. Bear in mind that if you are registering as a sole trader theres a specific regime that applies, called RETA. Our fees for an ordinary limited company set-up are 600 + IVA (21%) (please note that our fees are included in our answer regarding set-up costs above). Dealing with bank formalities connected with setting up of the company bank account. You have to deposit this amount in a Spanish bank account and once the company is registered, you are free to use this amount to invest in assets on behalf of the company. As we have just seen, depending on the type of company you would like to start, the corresponding residency card changes. 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It will offer you the possibility to expand to a new market while harnessing the power of your brand and systems. Employees are also entitled to 30 calendar days vacation per year. That is why you need to request the companys CIF. There are two different working residencies that can allow you to carry the process out: the entrepreneur visa and the work permit as a self-employed individual. Its a different matter, though, for expats from outside of the EU; they will require a work permit to move to Spain and set up a business. Our consultants are registered and regulated by the Professional Accountants Body of Spain and speak fluent English. This category only includes cookies that ensures basic functionalities and security features of the website. If you want a virtual office in Spain, add around EUR 80. Also, you will need to clearly define which is the activity of the company. Because of its flexibility and easiness in the registration process, just demanding 3.000 for the constitution process as a minimum capital investment. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. And its wrong. The cheapest way of setting up a business in Spain is by forming an unincorporated company. We are just going to briefly talk about the main ones: The different business structures in Spain are the following ones: Probably the best option for small companies, as the legal process for its creation is really simple. This has been a guide for expats who want to start their business in the Spanish Territory. You can do this as a sole trader (empresa individual) or partnership (sociedad civil). One example of this is siestas, which dont really exist anymore in Spanish business; although long lunches still do. Therefore, you can be sure that you will obtain timely answers to any queries you may have, in a language that you understand! Associations, on the other hand, are usually run more informally by groups of people who have a common interest. Accounting for special purposes, preparation of annual accounts. As with all insurance schemes, the levels of cover and costs vary, so it is best to take advice from an expert broker. You will really save money. The Spanish government can ask you to provide evidence on how your company could create jobs for workers in Spain. Manage communications with the Tax Authorities. Her English is totally fluent and she had no problem taking the time to read through all the documents and explain everything to me. What are the steps in setting up a Company in Spain with Corporate shareholders?
This process can take up to 48 hours. I could not have had someone more trustworthy and helpful. You will not be considered as an employee, and will have less social benefits than you would as a regular employee.
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