Ayuda Legal en España - Legal Help in Spain
             Ayuda Legal en España - Legal Help in Spain      

If you want to earn an income while residing in Spain. There are many advantages to start a business It is important to get legal assistance from a competent lawyer.

 

Here's the basic outline to create a business in Spain. We have 2 options, self-employed and a Spanish company (s.l.) (equivalent to a limited company in U.K.) let´s see adventages and disaventages:

 

1.- SELF EMPLOYMENT. SPANISH “AUTONOMO”

 

As the owner of the company you have unlimited responsibility with your assets for any debts that he may have with any third party. Now and in the future.

 

The quotas for Social Security are the same whether he has a limited liability company or a public limited company.  The minimum contribution with Temporary Disability coverage is 248.35 €/month (at the time of writing) and the minimum contribution without Temporary Disability coverage is 220.85 €/month (at the time of writing).

 

Men of under 30 years of age (35 years in the case of women) and women of over 45 years of age have a reduction of 30% during the first 15 months.  Disabled people get a 50% reduction during the first 5 years. 

 

Immediate family members of the contributor will also have the right to health care, as long as the established conditions are adhered to regarding current legislation.

 

 

The tax obligations are less than in the other kinds of companies, as are the costs for maintenance, due to the fact that it is not necessary to have a minimum amount of capital to start the company, nor are there Notary nor Commercial Registry costs.  

 

Equally our fees are reduced as the administrative process is also less.

 

The quotas for the Social Security are the same whether the administrator is of a limited liability company.  It is not possible to claim unemployment benefit and only in the case of having previously applied for it, will there be the right to claim for sickness pay, something that will have to be approved by the Treasurer of Social Security.  

 

What you do have is the right to public health care and to an old age pension, as long as you comply with the requisites with regard to the contributions.  

Immediate family members of the contributor will also have the right to health care, as long as the established conditions are adhered to regarding current legislation.

 

2.- BUSINESS AS A SPANISH COMPANY (S.L.) LIMITED COMPANIES

 

The main advantage of limited liability companies is that shareholders and directors are not liable for the debts and obligations of the corporation.

 

Documents:

 

1.- PASSPORT, N.I.E (foreigner’s identification number) in the case of foreigners, and D.N.I. / N.I.F in case of spanish citizens.

 

2. CHOOSING A NAME FOR THE COMPANY. You need to think in  five names and the name is reserved in the Central Registry of Madrid. If any or all names are already reserved, you have to choose others. Step 2 to 3 days

 

2. TITLE DEED IN THE NOTARY OFFICE.- The spanish company (s.l.) is prepared by counsel at the notary, this procedure may be two days.

 

In general the process of creating a simple quick Standard company is one week. Maximum 10 days.

 

3. MINIMUM CAPITAL.- 3.000 euros. If the contribution of social capital is in cash money, a certificate from the bank showing the investment of the money and its origin, the deposit must be made into a current account in the name of the company, in a bank deposit. Also is possible to bring some objetcs and simply declare a value, for example 3 mobile phones, a table…

 

4.- ARTICLES OF THE COMPANY.- It must contain information such is the name of the company, object and activity, commencing date, capital share, share holders names and rest of their particulars, business address, designation of the director of the company and the powers of the same, and list of limitations for the transfer shares to third parties.

 

- Apply for the company C.I.F (tax identification code). You will need this number always.

 

- Tax form 036, which is the registration with the tax system for which the company will be liable.

 

- Tax form 845, which contains the description of the activity, start date and description of the business premises.

 

- Inscription of the company director in the Social Security system.

 

- Inscription of the company in the commercial registry.

 

5. COST OF COMPANY.- Between 600 and 1000 euros in the more simple cases (included notary costs, register and lawyer costs)

 

ACCOUNTING

 

1. IVA.- Every three months we declare that we have entered VAT and VAT we have spent. So for example 2015; will be 4 statements per year: In April 2015 (first quarter) in July 2015 (second) in October 2015 (third) and January 2016 (fourth); addition in January 2016 must submit an annual summary of VAT.

 

2. COMPANY TAXES.- is generally 25% of fair profit after expenses. This tax in the earlier example, 2015, presented in July 2016.

 

3. ANUAL ACCOUNTS .- A balance each year also in July 2016.

 

4. MAINTENANCE COSTS of the company.- depends on the volume of business, but the costs of accounting and administration are between 150 and 200 euros per month + -

 

OTHER PROCEDURES IN THE CASE OF OPENING A BUSINESS OR AN OFFICE: PROCEDURES AT THE TOWN ADMINISTRATION

 

Licensing of activities and facilities (Opening Licence) – Licencia de Apertura

 

- Documents to be submitted: Form “Impreso normalizado”, copy of the IAE registration (impuesto actividades economicas or economic activity tax)

 

- Lease contract or deed of the premises, NIE of the applicant or articles of association and CIF (company fiscal identification)

 

- The specification of activity of the premises, premises plans, estimate of the facilities and equipment costs.

 

Permits (licencia de obras or building license): It is necessary in order to conduct any type of building works in a room, building or establishment.

 

Change of ownership of a business; The ownership of a business license may be changed if the business is in operation or has been in operation during the six months preceding the date on which the ownership will be changed.

 

If you hire employees:

 

Application for the contribution account number of the company: It is related to the social security contributions given by the company. It must be requested before the worker begins working in the company.

 

Workplace opening request (Comunicación de Apertura del centro de trabajo): It must be carried out by companies that open a new workplace or to resume activity. The request is addressed to the Provincial Department of Labor, Social Security and Social Affairs.

 

Request for “libro de visita” and “hojas de reclamación”. The “libro de visita” or visiting book is mandatory for all companies or self employed persons when they have employees. It has to be legalized by the Provincial Inspector of the county hall (‘Junta de Andalucía’).  It will be used by the social security inspectors to write comments during an inspection and must be available at any time upon request of the authorities. 

 

A complaints book ‘libro de hojas de reclamacion’ which is obligatory for all businesses must be available for any clients who wish to make any claims or complaints.  This has to be applied for at the county hall (by filling in a form and paying the fee of 2 euros) and you will be provided with the book and a sheet of paper advertising the fact that complaints forms are available which must be on view to the public.

 

Other points of interest

Company tax: 25% earned up to 120.202 € and at 30% from that figure upwards.

In Spain there are 3 different VAT rates 4%, 10% and 21%.

The VAT (IVA) has to be settled and paid each quarter (end of January, April, July and October). The forms to be filled out and stamped at the bank are: VAT form 300, Personal income tax is form 130 and withheld taxes for employees is form 110.

 

 

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