2010-12-09-Setting Up A Business In Spain

2010-12-09-Information from EuroWeekly

As more and more people move to Spain to 'live the dream', the demand for quality products and service in all manner of industries is growing, leaving the market wide open for anyone wanting to start their own business here.

However there are several fundamental issues that I would advise you to address in order  to ensure you achieve your dream.   I would suggest that you examine the market to make sure there is a supply and demand for the product or service you intend to provide.

Firstly you need to visit the national police station in Almeria and apply for an N.I.E. number. This is an identification number for foreigners,Simply take along your passport and fill in the forms.

In Spain there are two levels at which a business must be registered.

At local level you need to register your business with the town hall and obtain an opening licence (Licencia de Apertura) which will clearly define your business and the way in which it will trade.

• At national level you will register with the IVA office which is the equivalent of the Inland Revenue office.

Secondly is to decide on the format of your business, PLC / Ltd company.

Take expert advice as to which type best suits your business
 •  Empresa Individual: is equal to a sole trader with the business  being  run  in one persons name only.

•    Sociedad Civil: is a partnership where several individuals will come together to form a business.

•    Sociedad Limitada:   is  a  limited company with registered shareholders and a set minimum trading capital in the bank.

•    Sociedad Anonima is a larger company with a large minimum trading capital. This S.A. company also has shareholders.

Tax contributions

If you are a resident in Spain or not, if you have an income here, you may be liable for tax payments.Social Security payments

All businesses are registered with the Social Security office and as such will be liable for social security
payments which vary according to the status of the business. Making these payments will entitle you to the benefits of the local health service. The payments will also contribute towards your pension, however please note your contributions have to be paid for a minimum of 15 years to qualify.

If you intend to employ people you will also have to pay social security on their behalf.

Finally, if you are buying an existing business in Spain it is vital that you examine every aspect of the business before signing anything.

It is crucial that you ensure the company has no debts or tax liabilities as these debts can be transferred to you.