Starting Your Own Business in Javea
Setting up a Business in Javea by a foreign national is on the increase. You can start a business in Javea in three main ways,
• by investing in Javea property itself and then renting out the property or
• you can open your own small shop as a retail outlet or
• If you are a tradesman, you can start a small self employed business
As Spain fully integrates into the EU and more people move to the country, individuals starting their own business in Spain is growing as they attempt to cope with this increased demand for goods and services.
Before you start your own business in Javea, you have to take care of some of the fundamental issues. Wherever possible, you should take advice from the people who have started their own business in Javea in recent years just to get a feel for the rules and regulations of doing business in the country. They can really advise you on how to establish your business in Javea based on their own experiences. Working in Javea can be a different experience altogether as the market structure and circumstances differ from other parts of the world and as such and in order to start your own business in Javea, you have to understand the way the Spanish do things.
In simple terms, the main points of Starting a Business in Javea is as follows,
• If you are an EU citizen living in Spain, you are perfectly entitled to start your own business in Spain.
• You must apply for a certificate issued by the Central Commercial Registry (Registro Mercantil Central), confirming that the business name you intend to use is not already registered with them.
• You will need an NIE Number, which is basically an identification number used mainly for taxation purposes. You can apply for this by visiting a local Police Station. The application normally takes approximately a month to be processed.
• You will also require a CIF number, which is a number given out by the tax office to enable your business to pay the necessary taxes.
• In the UK, our businesses are registered as being a Limited Company, Public Limited Company etc and there is a similar system in Spain. You should seek expert advice from a Solicitor or Accountant as to which of the Spanish systems would suit you best.
• You must register your business with your local Town Hall and obtain a "Licencia de Apertura", which is your license to trade.
• You must also register with the Spanish equivalent of the Inland Revenue, which is known as the IVA Office. If you are not completely fluent in Spanish and confident with filling in all of the complicated legal forms, you should seek professional help with this process from a Solicitor or Accountant.
• If you receive any form of income from Spain, even if you are not a business owner or living in Spain permanently, you may be liable to pay tax. You should seek advice about this to avoid any fines or problems in the future.
• All business must make Social Security payments and these funds contribute towards local services such as health care facilities. If you contribute for 15 years or more, you will also qualify for a pension when you retire.
• If you buy a business with debts attached to it, you will be responsible for paying them. The same applies to buying an already established business. You must seek legal advice to have all necessary checks carried out on a business before buying it.
