Tuesday, September 15, 2015

Business in Spain, do you know your possibilities?

Nowadays, setting up a business in Spain can be a great decision, but it is important not to get lost into bureaucracy. This way, Evolutiza lawyers & Tax Advisors want to guide you explaining which are your opportunities and their advantages.

If we do not own a company (so we cannot open a branch, or a representative office), we have two ways to set up our business: work as a self-employed person or establish a new company.

Which are the requirements to be a self employed businessman? You only have to be an adult and be able to start a business. It is also necessary to make a registration process with the Spanish Tax Agency and the Spanish Social Security.

As the owner of the company, a self employed person directs and administers it, and he is liable for the debts and obligations. Regarding the obligations, it is compulsory to contribute to Social Security monthly, but there are reductions for young or disabled people. In addition, businessman immediate relatives will also have the right to health care.

On the other hand, you can establish a limited company, whose main advantage is that shareholders and directors are not liable for the debts and obligations. In this case, everyone who has financial business in Spain needs a foreigner's tax identification number (called N.I.E.). Besides, we need to do a deposit in a Spanish Bank account, whose minimum can be €3,005.06 (for a limited liability company) or €60,101.21 (for a public limited company).

After that, the articles of the association have to be taken to a notary. They have to contain information about the company, such as the name, its object and activity, shareholders names or designation of the director. If it is not possible to attend notary, you should sign a special power of attorney.

Once this is done, there are only some steps left, just like paying some taxes or registering in the Ministry of Labour and Social Affairs. 

If you have any doubts, or want to set up a business, we could advise you along this process, do not hesitate to contact us.