As you probably already know, in Spain it is allowed to do business both for residents and non-residents. That is, your status, presence or absence of a Spanish residence does not play any role. The only thing that a non-resident owner will have to pay is a tax on the income of a non-resident (IRNR) from the income received as dividends for the year, and also to appoint a Spanish national or a foreign resident with the work permit as a manager of the company.
But before we dive into the intense activity on the development of your own business, you need to decide whether to open company from scratch that means establishing a new legal entity, or to buy a ready-made company. Today we will consider the second option – the purchase of a ready-made v business in Torrevieja.
Types of ready-made business
Companies for sale can be divided into two groups:
- The first group includes operating companies that are on the market for a certain period of time, companies that have active accounting and tax records, their own name and / or brand, customer base, supplier base, staff, etc.
- The second group includes companies established for sale that do not have vigorous activity in the past and frozen immediately after registration. It is up to you to decide what type of business to choose being guided by considerations of rationality, time and safety.
Buying a ready-made business in Torrevieja
We recommend starting a purchase of a ready-made business in Torrevieja from the tax and accounting audit. Ask the current owner for the incorporation documents and carefully read the charter, purposes of the company, the list of co-founders. Be sure to check whether there are debts on social contributions, how many employees are in the state, what types of employment contracts are open, etc.
Any seller will talk up his business in different ways and call as a reason for sale moving home, retirement or the partition of property between the heirs, anything except the operational difficulties. So, trust is good, but control is better. And check twice or even three times, if you make a purchase through ‘trusted friends and partners’.
In addition to the audit, it will be necessary to check the availability of all necessary permits and licenses (if required by the type of activity), the condition of the commercial premises and equipment (if the business is purchased with the premises). If you only sell the business itself – traspaso, – and the premises are rented, do not be lazy to get acquainted with the landlord.
And, finally, analyze the situation on the local market, assess the profitability of the project. “The operating highly profitable restaurant with a constant clientele” may in fact turn out to be an institution filled with clients two months a year, and the remaining ten – idle almost empty. “A popular bar in a busy zone” will be break-even (even not profitable!) only when the owner himself will stand at the counter from dawn to dusk, otherwise all profits will go to the salary and taxes of the employees.
The same story with shops, real estate agencies, construction companies, hairdressers and other companies from the service sector. In Torrevieja, there are ten intermediaries for each potential client. A good customer base, reputation and uniqueness of the offered goods or services will save you. But do not forget that it’s about buying a ready-made business, so in the business history of the acquired company there should be no black spots.
Buy a business in Torrevieja: an established and frozen company
Such companies are established by legal and consulting firms solely for the purpose of selling. For the buyer, this option is convenient as a business is bought completely new with full guarantee of absence of negative tax history and creditor indebtedness, and at the same time it is ready for urgent reissue to a new owner. Thus, in evidence there is a time saving and the bureaucratic runaround is reduced to a minimum.
When buying a frozen company, it is important to pay attention to the purposes of the activities specified in the charter documents. It is important for them to be as close as possible to what you plan to do. Of course, if necessary, purposes can be changed or supplemented within acceptable limits, but this is unnecessary delay.
Buy a business in Torrevieja by proxy
Both In the first and second case, the purchase can be made by proxy – this is allowed at the legislative level. The power of attorney can be executed by your friend or relative, a lawyer or agent to whom you trust to represent your interests in the territory of Spain. Thus, the buyer does not need to be present even when signing the documents.