Set-up Business in Spain

setup-company-spainIn Spain takes an average of 47 days to complete the formalities for set-up a business in spain. Compared with other OECD countries, in Spain it takes more than twice the average. But these data, published on the web www.doingbusiness. com, refer only to the general arrangements, mandatory for all types of businesses. If you also take into account the specific steps for each type of activity, the figures would skyrocket to make comparison impossible. The accomplishment of all this paperwork is one of the first obstacles that the entrepreneur is at the beginning of their adventure. Usually, any future employer is prepared to meet its obligations to the Treasury and Social Security, steps that are required for the creation of every business. But then comes a multitude of specific procedures, much more complex.

To look for help

The first difficulty comes from the coexistence of numerous “windows” to which we must go, as applicable to the various state agencies, state or local government. Added to this it is that there is no model procedures for each activity, and that each region and each municipality can set the requirements and the fees to be paid, so these conditions can vary greatly from one location to another. Although it seems a maze of paperwork, actually, “these steps are not complex, and any person can manage,” said lawyer Carmen from Legálitas Domingo, specialist in administrative law. The problem is that “they are cumbersome and can take some time.” Information can be obtained from business associations, municipalities (Phone 010), autonomous communities and chambers of commerce. In addition, many governments have joined the Business Desk (www.vue.es), which centralizes all procedures regardless of the organism to which they relate.

Heavy penalties

Despite the initial difficulties, never be tempted to skip the paperwork. Specifically, “operate without licenses, authorizations and registrations required is not advisable,” said the expert Legálitas. “If the authorities detected, the offender will undergo two consequences: firstly, the precautionary closure until efforts are made to get the license.” In addition, you will incur a fine. “The amount is set by each autonomous community, but is quite high: so much that has not paid off,” he says. For example, fines for violating the ordinance of hygienic measures in premises where food and / or drinks the City of Mostoles (Madrid) will be served from 3,000 to 60,000 euros. Breaches of labor law are also very expensive. The president of the National Association of Accredited Preventive Entities (ANEPA), Juan Carlos Bajo, warns that “violate the obligation to establish and implement a prevention plan is punishable as a serious offense and can be valued between 250 and 30,000 euros”.

GENERIC PROCEDURES

Are those that every business, whatever its nature, must be met before starting their activity.

1. Administration of Finance: registration before the start of operations, high in the Business Tax (IAE) and VAT, census declaration of commencement of operations and obtaining VAT.

2. Commercial Register: registration of the company (if not self).

3. Treasury General Social Sec (SS):. Registration entrepreneur Regime for Self-Employed (only if you are performing the activity as such), registration of the company in the SS and high employee.

GENERAL ADVICE

Before you get going, keep in mind these notes so that you do not give up efforts early.

1. Start the paperwork in advance, as they may delay the opening of the business.

2. The requirements vary from one autonomous region to another and according to the municipality.

3. The rules are changing rapidly. It is always advisable to request updated information on the relevant administration.

4. Make copies of the documents you must submit. The most common are:

Identification of the company and its owner: DNI, NIF, charter of society and partner representation powers, IAE registration and Social Security.

Business data and the headline of the explanatory report, academic qualifications of the head and receipt of payment of the fee of the professional association.

Data location: deed or lease, plans local indicating the destination of each stay and other information of interest, depending on the activity.

LICENSE OF OPENING OF ACTIVITY

The license for activity or opening is the document certifying that the premises have living conditions and appropriate use to accommodate economic activity to which he goes, without disturbing others.

MANDATORY:

All premises must have this license. Only exempt professional, craft or artistic activities within the home itself, provided that there is no direct retail sales or nuisance to neighbors caused.

The license for activity or opening business is transferable and belongs to the business owner, so you have to ask for a new one each time there are changes in the local, the activity or the owners of the business.

PROCEDURE:

1. The license is issued by the council. Since Legálitas, attorney Carmen Sunday explains that the first step is to fill in a form in which the application is made, detailing the business and the characteristics of the room in which it is held.

2. For innocuous activities, which in principle should not cause any discomfort, the requirements are simpler. This applies, for example, the trade of non-perishable or dangerous products (eg stationery or a fashion boutique), or a small office open to the public (such as a property or an agency).

3. Activities classified. Increase licensing requirements classified as nuisance activities (which may emit noise, vibration, gases, dust, etc.), unhealthy (that may cause detachment or disposal of products or substances harmful to health), harmful (those which damage to the environment) or hazardous (related to explosives, fuels, radioactive …). To exercise annoying, the express permission of the community of property owners is necessary. The remaining classified activities are performed, usually in industrial land.

4. Deadlines. “The deadline for the procedure is resolved depends on the workload that has the council at the time of the request,” explains the expert Legálitas. As it can take several months for these procedures does the “negative silence” of the administration: that is, that if silence means consent.

According to this principle, if the home qualifies, you can open the business of provisional basis pending the final license, although Carmen Domingo warns that this option is only recommended if the entrepreneur is fully sure it meets the legal requirements.

COMMON REQUIREMENTS:

1. Building permit

Mandatory for: all premises must be conditioned to obtain a license to open, and whenever there is work to do. Procedure: a municipal local technical review and issue the building permit indicating the necessary renovations. If they are minor works, the technician can license the provisional opening, conditional on improvements are made. If major works are required, there will be a new inspection after the remodeling.

2. soundproofing measures

Mandatory for: premises where potentially polluting activities are carried out by noise and vibrations, such as bars, shops, theaters, schools, etcetera.

Procedure: The owners of the premises must submit a noise impact study signed by a technician include an explanatory report and plans, where the characteristics of the source of contamination and prevention and control measures adopted detailing: sound level meters, noise limiters, double door, special insulation, etc.

2. Hygiene measures

Mandatory for: premises where food and / or drink is served, such as bars, cafes, restaurants, ice cream …

Procedure: municipal regulations detailing the characteristics of each room (kitchen, storage, bar area, public area, toilets and changing rooms), indicating its minimum area, building materials, ventilation and type of furniture. For example, require a vent and treat separate food and waste areas and appliances, cleaning materials and specific waste containers.

3. Fire Plan

Mandatory for: all buildings must have evacuation signs, emergency lighting and fire extinguishers. Fire plans are mandatory for health centers, public entertainment, holidays and industrial activities.

Procedure: they must have emergency plans that include evacuation protocols and self-protection. Furthermore, it should exhibit in a visible place loa local levels with exit routes, have audible alarms and extinguishers have appropriate for the kinds of fires that may occur.

ADVICE:

1. “Before you buy or rent a place, you must go to the City Planning area to see if you have the license,” says Carmen on Sunday. “Do not just look in the local is already doing the activity that we perform. The bylaws are changed frequently, and it is possible that once obtained the license, but no longer meets the requirements “.

2. From the moment the entrepreneur requesting deliver the printed license will have to pay the fees, regardless of whether the grant.

3. Studies of architecture or engineering and construction companies specialized in adapting local to the obligations imposed by the appropriate operating license.

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