Opening a business in Spain
Today we are going to explain the common formalities we should comply with before starting a business Spain. No matter if you a freelancer or a limited company.
Note: Depending on the business sector, there may be additional formalities.
Business license with the local authority
A business license (“licencia de apertura”), as the name implies, means that a you need to apply for a permit from the local government to start a business.
Previously, the law required store owners to apply for a license before they could open their business and wait for the license to be approved.
In order to speed up business set up, the law was changed a few years ago. Nowadays, in the majority of the activities, it is not necessary to apply for a license, but simply but simply to declare or communicate to the municipality that you are going to start a business. This is called “Comunicación previa” in Spanish.
Note: Most types of stores, offices, restaurants, etc., only require a simple communication. However, since each municipality has its own regulations, you should ask the city office in advance to confirm them.
The procedure for the communication is quite simple, you only need to fill in a form and pay a tax. For osme activities, you may need to contact an architect to make a technical project (“proyecto técnico”) of your activity. This is a report that states the type of store, number of machines, the suitability for the type of business etc.
It is important to note that each municipality may require different documents. After the opening notification procedure, the municipality would send a technician to check if the content of the project is consistent with the actual situation. Sometimes, however, they may not even bother to come and check.
Tax office registration
The Spanish General Tax Law requires that anyone who engages in business activities in Spain must be registered for tax purposes. Tax registration means that the operator notifies the tax office of the relevant information about the business (sector, address, etc.) so that they can collect taxes.
To register for tax purposes, you need to use the official form Modelo 036, which can be filled out online. Some tax offices also support the filling out and submission of the form in person at their offices. As the registration procedure may be complicated, we recommend to contact with a professional advisor.
Note: There is a simplified version of Modelo 036, called Modelo 037, which can be used if the filer is self-employed and the amount of information to be filed is not too large. WestLaw. com copyright
Registration with the Social Security
In addition to tax registration, the Social Security Law requires all workers in Spain to pay social security contributions to the State. Therefore, the owner of the business needs to register with the Social Security as an “employer” in order to pay social security contributions every month.
Communication of the work center to the labor authority
A work center is understood to be an autonomous productive unit, i.e., one that creates, procures or manufactures an object or provides a service that has a specific organization, both of goods and of people.
In general, a work center is any place where a worker can be found in the course of his or her work. Companies that has a work center must communicate to the labor authority.
If a company has more than one work center, it must make as many notifications as it has centers.
