Type: Individual entrepreneur
Empresario individual - Autonomo
Registration period: from 5 to 10 days
In order to start doing business in Spain, you need to decide on the organizational and legal form of the future business. The most common form of small business is an individual entrepreneur.
The matter here is also related to taxes, if the annual income does not exceed a certain amount, then taxation will be beneficial. In addition to VAT, there is a personal income tax - IRPF, which is levied progressively - the higher the income, the higher the tax percentage. The lowest IRPF is 24.75% with an income of up to 17,707.20 € per year.
Advantages of an individual entrepreneur in Spain:
- full independence, independent decision-making;
- simpler and clearer taxation;
- the amount of the authorized capital is uncertain.
If an individual entrepreneur is suitable for you, then it should also be properly registered, because lack of knowledge and nuances in this matter can lead to difficulties, loss of time and money.
To create and register an individual entrepreneur without any problems, it is best to contact our Company, and we will help you create a small business in Spain. We can both help in creating an individual business, and create it "turnkey", you do not even have to enter Spain for this, but simply give our lawyer a notarized power of attorney.
To register an individual entrepreneur, you need to collect the necessary documents, go through some administrative formalities, which we will do with ease, so you simply cannot do without specific knowledge and experience.
Mandatory documents required for registration of an individual entrepreneur:
- a residence permit with the right to work in Spain;
- get the tax N.I.E and fiscal number N.I.F;
- registration in Spain;
- register with the tax service – Hacienda - as an IVA (VAT) and IAE (economic activity tax) payer;
- to issue and submit applications for the start of your business activity to the relevant state body;
- register with Seguridad Social - Social Insurance Service;
- obtain all necessary licenses in the municipality related to your future activities;
- pay the state fee for opening an individual entrepreneur;
- register employees, if any;
- register with the Registro Mercantil - Trade Register;
- purchase Libro de visitas - The Book of visits.
These are all the main stages that need to be completed, not to mention the additional ones that may be needed in each individual case.
Registration with the Tax and Social Insurance Service
When creating a new individual entrepreneur in Spain, you will definitely need to register with the tax service as payers of certain taxes, which also arise for legal entities, since this is a commercial activity.
Registration is carried out at the local tax service according to the territorial location of the office or the physical registration of an individual entrepreneur.
When registering, it is very important to choose the activity mode.
The mode of activity of an individual entrepreneur:
- profesional - professional;
- empresarial - entrepreneurial.
One of the modes is selected according to your future activity. If your business requires certain qualified knowledge, and with it licenses to carry out such activities, then a professional mode is chosen. For example, lawyers, accountants, doctors, translators, architects, artists, designers, and so on. That is, such professional activity provides for remuneration in the form of fees.
If your activity will be related to sales, repairs, production and the like, then the entrepreneurial mode is chosen.
When choosing a professional mode of activity, IRPF is included in the invoice - an invoice or receipt for services provided by an individual entrepreneur, and in the case of an entrepreneurial one, it is not included.
The registration procedure will take from 5 to 10 days.
Then, you will have a month to register with the social insurance authorities. There you will need to submit a special application and an original certificate of registration with the tax service - IAE.
Office
The rented space for your office must correspond to your types of activities and the equipment in it must not violate applicable regulations. If this room is not suitable, then you need to create a technical project and get a license to carry out the necessary work.
Additional procedures
A visit book is mandatory for every individual entrepreneur in Spain, but in addition, it requires at least one PC with Internet access that will support reading chip cards. You will need at least 1 work computer for each office.
Registration in the Trade Register is not mandatory, but is most often necessary by type of activity. Almost every type of activity will require a license and separate forms are filled out during registration.
To go through all these stages correctly, you need to contact professionals with extensive experience, and our Discount - House company will register you as an individual entrepreneur quickly, correctly and without unnecessary financial costs.
Our representatives will advise you on all issues and tell you what is best to choose.