As seen no previous ArticleSpain besides the good quality of life and safety, is one of the EU countries that most facilitates the opening of new small businesses. However, the entrepreneur needs to prepare properly before start a business in Spain because this country is demanding in terms of documentation and bureaucracy. This can hinder the speed in the business establishment.
A starting a business Spain requires it to be made before a notary and registered in the Commercial register. Thus, the following steps must be completed:
- Where the provision of company is made through a representative, the founder must grant a power of attorney to this;
- Request the Tax Identification Number (TIN) or Foreigner Identity Number (NIE) if the individual is from another country;
- Request name authorization certificate company;
- Opening a bank account to deposit contributions of capital, in addition to obtaining the bank certification;
- Constitution of company a notary, by deed of the constitution and bylaws of this;
- Request for a provisional NIF company;
- Payment of tax equity transfer;
- inscription company no Commercial register;
- Obtaining the definitive NIF of company;
- Legalization of official book trade;
- Finally, tax formalities and employment.
Entrepreneur nationality
The rules for start a business in Spain also depend on the nationality of the entrepreneur. That is, if it has the nationality of one of the member states of the European Union countries outside the EEA or Switzerland, the process is easy. Ie not requiring any authorization or documentation.
Otherwise, he must apply for a work permit at the Spanish embassy in his country of origin in order to be able to move to Spain and open a business there. This permit must be renewed annually, however, after 5 years the entrepreneur can apply for Spanish resident status.
Entrepreneurs who want foreign start a business in Spain necessarily require an Alien Identification Number (NIE). In other words, this is a sequential, unique and exclusive personal identification number and must be included in all self-assessments, tax returns, communications or documents submitted to the Spanish tax authorities. Thus, the NIE can be requested in the entrepreneur's country of origin or at the General Commission of Foreigners and Borders in Spain.
Company opening
The authorization may be granted by a person with sufficient legitimacy to any natural or legal person. In the case of the person who will cede power to another be Spanish, you only have to go to a notary and that it is not necessary the presence or approval by those who will receive the proxy.
On the other hand, if it is a stranger, the power of attorney is usually held in the country of origin of this. In this case, the person who will cede power should go to a notary and attorney must be legalized according to Convention Handout of the 1961 HagueIf the country concerned is a member, but must follow the normal procedures of that country. In addition, it is necessary that this power of the oath to be translated into Spanish.
Regarding the required documents to this procedure, the individual who will cede power shall provide a declaration of its authority and ability to grant power of attorney.
Necessary documents
The Spanish government is quite demanding in relation to documentation required to start a business in Spain. It follows then the necessary documents:
- Attorney: the founders must provide a proxy for the person who will create the new company its name in Spain;
- NIE or NIF for foreign partners and directors;
- name of the authorization certificate company: A request in Commercial register It must be made in order to determine whether the name already exists or can be used. This certificate is valid for three months and needs to be renewed if the company It is not made within the stipulated time period, and during these months, no other company You can use or to order by that name;
- bank certificate: the amount payable at the opening of a new company It is usually deposited or transferred to a bank account in Spain on behalf of the new company with the words "company formation process" added;
- Documents to be submitted to the Spanish notary: the new bylaws company, Legitimate identification documents of the founders of company and a foreign investment declaration duly completed;
- beneficial ownership statement: the notary must identify the individuals who own or control, directly or indirectly, more than 25% of the capital or voting rights of legal persons involved or engaged, directly or indirectly, control over the administration of these people by other means;
- provisional NIF before the Spanish Tax Agency;
- Payment of tax equity transfer and stamp duty;
- Documentation to be submitted to Commercial register;
- NIF definitivo da Spanish Tax Agency;
- Legalization of official trading book in Commercial register;
- Official statement early before activity Spanish Tax Agency, if applicable;
- Finally, the registration in the social security company, if applicable.
costs associated
There is no fixed cost in starting a business in Spain. This value depends on several factors, such as the initial capital of the new company, Number of partners, among others.
The cost associated with Business Registration round 100 and 150 €. However, there are other expenses to consider, such as notary payment that can both have a value of 150 € for a Limited Partnership or 300 € for a limited company. When the capital of a limited liability company does not exceed € 3100 and some other requirements are not met, notary and registration fees are fixed at 60 € and 40 € respectively.
Thus, an entrepreneur can see your company officially established before the law Spanish 15 to 30 days after submission of all necessary documents in the Mercantile Registry.
Fees and taxes
After the start of economic activities, company You will have to pay taxes. The number of taxes for which the company will have to pay depends on your type of business. Then, we highlight the most common Spanish tax:
Corporation tax
A standard rate of 25% and that new Business receive tax incentives. Thus, it allows the first two years only pay 15% tax on the first € 300,000 of income and 20% on profits above this value.
Income tax
National and regional rate imposed on all individuals who work or manage their own business. Nationally, the rate ranges from 9.5 to 22.5% while that varies by region with the lowest rate of Madrid and Catalonia rate the highest.
Value Added Tax (VAT)
While some Business They are exempt from this fee, most need to pay this tax. Typically they are charged at 21% of profits companyBut it may be only 10% in the case of certain medical products, pharmaceuticals, cultural events, etc., or 4% for food, newspapers and other social services.
Social Security
Finally, like other countries, it is necessary to make contributions to social security. Partnerships and autonomous contribute at a rate of 265 € per month, plus additional if they are to employ any employee contributions. On the other hand, in the case of Business limited contributions are made by a rate of 29.9% of salaries.
