- 29 June, 2018
- Creado por: Paul Urrutia
- Categoría: Doing business in Spain, How to set up a business in Spain, Legal and tax representation in Spain
A representative for setting up a business in Spain is an interesting option for non residents, which makes it possible for many foreign businesses to start operating ASAP without any complicated procedures.
If you have decided to carry your business into the international market and come to Spain searching for new opportunities, congratulations! You have made the right decision. For its good geographical localization and particular economic features, Spain is a country with a great potential for any foreign entrepreneurs who wish to start new projects beyond their borders. But maybe the fear of finding tons of “red tape” or awkward (and endless) procedures is making you doubt… Do not worry. In this post we will tell you how to get a representative for setting up a business in Spain who will enable you to do any business activities in an efficient and transparent way. It is a very interesting (and quite unknown) figure which can be the point of departure for your business’s development in the Spanish territory. We will explain you the official regulations and compulsory procedures to appoint a representative for setting up a business in Spain who will be the visible face of your company in our country.
Representative for setting up a business in Spain with non-resident CIF
On the blog of our business consultancy LEIALTA we have already talked about the non-resident CIF, a really interesting option for foreign entrepreneurs who want to do business in the Spanish territory without setting up a branch or subsidiary company. This structure has many advantages, as you can see if you read the post where we detailed the special features of the different legal structures for setting up a business in Spain. Though, do not think you can just arrive and be the first to be attended: in order to get the desired CIF you will need a representative for setting up a business in Spain, as described in Article 6 of the Spanish Income Tax of Non Resident.
The representative for setting up a business in Spain must be a person who has had his or her tax domicile in Spain for 183 days or more. There is no alternative: you have the representative and get the CIF, or do not have and do not get it. And you must be careful, because trying to do business in Spain without proper legal and tax representation is considered a serious infringement before the Spanish Tax Agency and can be punished with sanctions from €2000 to €6000. Due to a lack of good advice, many foreign businessmen and women are not aware of this obligation and end paying the consequences.
Tax and legal representative: obligations and procedures
Acting as a legal and tax representative of a foreign company in Spain involves some risks. The most evident is related (as usual) with money: the representative is accountable before the law for the possible debts which are not assumed by the parent company. So it is very advisable to make sure that the company is in a good financial situation, and that the owners assume their obligations. Once this obstacle has been overcome, bureaucratic procedures must be taken in consideration. You can see them listed in the enclosed graphics: you will have to empower the representative for setting up a business in Spain, register all his or her tax obligations in the corresponding Spanish tax office and register his or her activity in the Commercial Register. These procedures are not very complicated, but if you are not familiar with the Spanish tax regulations you can easily overlook any of them.
And the winner is… The external legal and tax representative
Let’s see the best options to choose a legal and tax representative for setting up a business in Spain. Overall, there are three possibilities:
- Hiring a Spanish worker
- Displacing an employee of your own company
- Hiring this service through a specialized business consultancy
Let’s take a closer look at each one. In the first case, hiring a new employee in Spain will mean that you will have to assume another fix payroll in your business, not to mention trusting somebody that you do not actually know. The second option is not less complicated: you will have to report your employee to the Spanish Social Security service and manage features such as allocation, travels, allowance…
We surely believe that the third option is the best for you: contact a Spanish business consultancy with tax and legal representative services in Spain. In LEIALTA we are experts in the field and have a young English-speaking professional team which will make procedures much easier. With our help you will get the right legal and tax representative for setting up a business in Spain and get the non-resident CIF, essential to do business in our country. We offer you many advantages: affordable price, professionalism guaranteed and a large knowledge of Spanish institutions, law and tax obligations. Leave this service in our hands and feel free from any worry: problems, dealings or possible sanctions. Our best cover letter is the opinion of many satisfied customers!
Your business in Spain, closer to reality
After reading this post, we are sure that your dream of setting up a business in Spain is closer to reality. If you have a reliable and efficient representative for setting up a business in Spain, everything will be easier and you will not have to face the consequences (sometimes really serious) of a wrong choice. Do you want more information about this subject? Contact our legal and tax representative service or leave a comment. We are a business consultancy specialized in helping foreign entrepreneurs to set up their business in Spain: we will clarify your remaining uncertainties.