What are the requirements for starting a business?

The business process can be somewhat complex, but with the following recommendations and fulfilling the requisites for starting a business you will be able to carry out successfully the creation of your business.

Business constitution

When starting a business you should take into account various factors and pay special attention to all the details, complying with all the legal requirements for its constitution.

We are going to tell you about all the requirements for starting a business you need to know. We will also give you some recommendations to perform effectively the process of business constitution and greatly simplify the procedures that you must accomplish.

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Requirements for starting a business

You have a business idea and you want to carry it out, but to bring to life your business idea and formalize its legal constitution you must meet the following requirements:

  • Natural or legal person: Define if the registration of the company will be as a natural person (individual or sole owner) or instead as a legal person (Union of people who will develop different functions within the company).
  • Opening License: You must make a request in the Town Hall of a municipal opening license to start your business activities.
  • Tax liability: Physical and legal persons have similar tax obligations, however, they have some different characteristics:
    – Physical person: You must enroll yourself in the special scheme for self-employed workers (RETA). After this you will make your statement of income, settling at the basis of the personal income tax (tax on the income of physical persons). You will find a similar situation when dealing with the VAT (value added tax) and when entering the corresponding Social Security contributions match.
    – Legal person: You must register it in Economic Activities Tax (Impuesto de Actividades económicas). After that, they have the same tax obligations as individuals plus paying the Company Tax (Impuesto sobre Sociedades).
  • Hiring employees: In the case of having the need to hire staff for the company, both the legal and physical person, will have to perform:
    – Affiliation in the Security Social.
    – Registration of the company in Social Security.
    – Have a book of visit in the company.

 

 

Recommendations for paperwork

Once you know the necessary requirements for starting  a business we give you the following recommendations. With these tips you will be able to success in your business constitution:

  • Start paperwork in advance, since this may be a reason for the delay  in commencement of the business activity.
  • Check the requirements based on the autonomous community where you go to debit your company, because they vary from one place to another.
  • Request updated information for setting up your company in the corresponding Administration, since regulations change quickly.
  • Make photocopies of the documentation to submit, as it will speed up procedures. The documents usually required are the following:
     Identification of the company and its owner: Certificate of incorporation and powers of representation of the partner, DNI, NIF, high Social Security and in the IAE.
    Information of the holder and the company: Academic qualification of the responsible person, memory which describes business and proof of the fee of the professional school payment.
    Local information: Drawings of the local in which the location of each stay is shown, rental contract or deed to the property and other information of interest depending on the activity.

Now you know the requirements for starting  a business and all our recommendations to streamline and simplify procedures. Do you feel prepared to set up your business?

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