We want to help you get your business up and running as early as possible! We can advise you and manage the necessary formalities so that you can start your business activity without difficulty. Remember that you have to register as an individual entrepreneur with the Social Security and the Treasury, present models 036 and 037, among other bureaucratic operations, and we will explain this in detail below.
You have at your disposal an integral service of professional advice so that you only have to concentrate on the things that really matter to you. We can solve any doubt about the legal form that your new activity should have. Our experts will inform you about all the options so that you can choose the one that best suits your business needs. Do you know that there are different legal and commercial possibilities that can improve the performance of profits?
There are company formulas to take into account according to the number of partners, investment, liability and applicable taxation. In this section we will focus on the options available to the individual entrepreneur. Do not forget that you can consult us with any doubt, without any commitment.
What is an individual entrepreneur?
It is a legal form that presents a number of ideal advantages for small businesses. The entrepreneur is a self-employed person, a natural person, who will exercise a regular economic or professional activity directly on his own account. It is considered practically self-employment, since the owner of the business is at the same time a worker, independently even if he has employees.
How to register as an individual entrepreneur?
You have to go to a Point of Attention to the Entrepreneur (PAE) and complete the Electronic Single Document (PAE). This will give you access to all the formalities you need through the Internet from the Business Creation Information Centre and Network (CIRCE). Don’t forget that in addition to the Social Security and Tax Agency procedures, you will need to bear in mind the following steps:
- Application for licences from the Town Hall
- Procedures on Data Protection
- Applications for the reservation of a trademark or trade name
- Communication of employment contracts to the public employment service
There is no previous procedure for you to become a sole proprietor. Although there are some minimum requirements: to be of legal age, to have free disposal of goods and to carry out the activity as a self-employed person in a hasty manner.
Advantages and disadvantages of the sole proprietorship
If you are considering several options for your project and you think that the most feasible legal form is that of an individual entrepreneur, it is important that you know their advantages and disadvantages. This form is especially recommended for small companies.
It is the option that has the least management.It will not be necessary to carry out formalities for the acquisition of legal personality.
It is cheaper. Above all because it is not a legal person other than the individual entrepreneur himself. Nor will a minimum capital payment be required.
Your responsibility will be unlimited. You respond with your personal patrimony to possible debts generated in your activity. In this case there is no difference between business assets and civil assets. Something that can be dangerous.
You will have to face all expenses and investments alone.
If your business starts to grow and the volume of profits increases, you may get a fright when you have to pay your taxes. Individuals are taxed at increasing rates depending on the volume of income. As opposed to companies with less than 8 members who only pay 25% tax up to 120,202.41 euros.
The responsibility of the individual entrepreneur
The most important thing about this business choice is to understand the responsibility of the individual entrepreneur. It is key to understand the rights, obligations and risks you will have to assume. Remember that you will respond to third parties with all your assets to possible debts that could generate your business activity. You can check the level of responsibility at CIRCE.
And don’t forget that if you are married this responsibility can also derive to the spouse. However, the type of economic regime of the marriage is always taken into account. In this case, we advise you to register with the Mercantile Registry, even if you are not obliged to do so. In this way you can inform previously about the economic regime of your marriage, as well as the revocation or opposition to your legal partner having to bear the debts of your business activity. Avoiding possible risks.
Other legal options to undertake alone
The main question for entrepreneurs is to choose the appropriate legal form. The two main options are the figure of the individual entrepreneur or, on the contrary, to create a company. We always advise the first option for the self-employed. It is the simplest and cheapest, remember that you can also benefit from the flat rate for self-employed.
In addition, when the income grows, you will only have to change to a limited company or a one-person limited company. This is totally legal and also the most usual. Where you need it you can count on our help to make the change without leaving loose pieces. We show you below the other options and their main characteristics in the case of considering not having any partner.
More options and services to start your activity in AfinaBusiness Consulting.
How can we help you in Afina in your first steps? We will help you to fulfil your dreams without worries. Our comprehensive management plan and business advice can bring you many advantages. We speed up registrations and administrative procedures.
Our results are guaranteed by the loyalty of our client portfolio. Our team of lawyers are in constant training to be able to manage any novelty that arises in the new legislation. We are experts in solving doubts in this sector. We will help you with the previous procedures so that you gain confidence in your first steps!
- Census Declaration.
- Registration in the Tax on Economic Activities (IAE).
- Inscription in the Special
- Regime for Self-Employed Workers.
- Legalisation of official books
- Avoid fines and possible sanctions.
We will help you in any management both in the beginning and in the development of the activity. In this article we have only mentioned the main and most common procedures. We offer many more services. If you have any further questions just contact us.
- Consulting for business mergers
- Business restructuring: Risk and efficiency analysis
- Arbitration services to resolve extrajudicial disputes
- Consulting in venture capital operations
- Business Consulting in Barcelona
- Corporate tax accounting
- Advice on shareholder agreements
- Consulting and management of responsibility of partners in a limited company
- Consulting for companies with foreign partners
- Data protection Consultancy, RGPD 2018
- How to claim the income tax maternity or paternity?
- Business Transfer Consultancy
- Consultancy services to setup a mercantile
- Advice to the individual entrepreneur
- Fiscal Analysis of new operations
- How to set up a company abroad?
- Services of transmission clauses mortis
- Advice on the partners ‘ pact
- Consultancy services of participatory loan
- Rewiew income tax returns