Entrepreneurs, who have a desire to register a company in the Canary Islands, have the opportunity to establish an enterprise in Tenerife. You will find out more details of the procedure in this article.
The Canary Islands includes seven islands of volcanic origin, the largest among them is Tenerife. They are an autonomous community owned by Spain. If you want to set up a commercial enterprise in Tenerife, it will be useful for you to know, that Spanish law applies here.
What are the advantages of opening an enterprise in Tenerife?
When deciding to start a business in Tenerife, pay attention to the advantages of this jurisdiction:
- Today it is one of the most popular tourist destinations in Europe, which is good for the development of the hotel and restaurant business;
- there are tax exemption;
- there is a low crime rate.
A registration process in Tenerife, as in any other jurisdiction, begins with the choice of the legal form of the enterprise. Therefore, it is worth considering that in the territory of the specified state you can open:
- LLC (Sociedad de Responsabilidad Limitada or SL). This is an organization that can be established by individuals or legal entities with authorized capital, divided into shares;
- JSC (Sociedad Anonima or SA). This is a company with shares, divided by a certain number, which can easily transferable;
- Private enterprise (Empresario Individual or Autonomo). It is owned by individuals or legal entities.
YB Case team can provide you with legal advice on registering a company in the Canary Islands, based on the type of activity of your future enterprise. We also provide full legal support at all stages of business registration in Tenerife.
In order to register an LLC in Tenerife, you must:
- have at least 1 director (both an individual and a legal entity, without residency requirements);
- contribute an authorized capital of not less than 3000 EUR;
- get a certificate of registration of a name of your firm;
- receive an open act on the registration of a company in Tenerife, certified by a notary public;
- apply to a company tax identification code (NIE).
Choosing a company name
Registering a name for your enterprise in Spain is a procedure that has certain requirements:
- a uniqueness of the name;
- a presentation the entrepreneurial activity in the company’s name;
- a simplicity of a name for easy acceptance by potential client.
In more detail about this, you can call the employees of our company. To order personal legal advice on registering a unique name, use the contacts listed on the site.
Documents for setting up an enterprise in the Canaries
To establish a business in the Canary Islands, you need to collect the list of documents, required by the registration authorities of this jurisdiction. In order for documents to be quickly prepared and properly executed, we advise you to seek legal assistance from specialists. YB Case employees are ready to provide legal support in this process.
Obtaining a license in Spain
To start a business, you must obtain a license in Spain. By obtaining a license in Tenerife, you can be sure, that your business is perfectly legal.
There is the general regime of the Spanish tax system. Consequently, corporate tax is 25%.
New companies, startups registered in Spain, will be subject to corporate taxes of 15% in the first two tax periods.
here a special tax (Islands General Indirect Tax (IGIC)) is applied instead of VAT. A tax is 7%, but it can vary from 20% (for tobacco) to 0%.
When registering a business in Tenerife, it is worth knowing that employers are required to withhold interest on their worker’s wages and benefits from personal income tax (PIT). A tax rate varies from 19% to 45%.
Opening an account in the Canaries
A banking system of Spain includes commercial banks, monetary funds and credit cooperatives. Our experts draw your attention and offer legal advice on opening a bank account in the Canary Islands in the following financial institutions:
- Banca March. The bank has 90 years of experience. It offers services to both small and large businesses, finding an approach to each client individually.
- CiaxaBank. It offers its clients a wide range of services adapted to customer needs and works to remain the number one bank in Spain. In 2019, it became the best bank in Western Europe.
- BBVA. It is a bank with over 160 years of history. It holds a leading position in the Spanish market and is the largest financial institution in Mexico. The bank provides an extensive range of services and has an individual approach to customers.
It should be noted, that some local banks support Alliance Lite 2.
Those, who want to open a corporate account in Tenerife, can order personal legal advice from our experts and, if necessary, get legal support at the stages of the procedure of opening the account for the company.
To order personal legal advice on establishing a business in the Canary Islands, call us at the contacts listed on the site.