UNINCORPORATED ENTITIES
These exist whenever an activity is carried out under the entrepreneur’s own name (in other words, invoices are made out in their name, and is backed by their private assets.
No distinction is made between company assets and private assets.
Note: Due some new laws approved by Spanish goverment during last years, currently is possible limiting the entrepreneur’s liability … but becoming a “limited liability entrepreneur” would require the same costs and paperwork than setting up a limited company, so if you want a limited liability option we recommend the limited company.
The best-known ones are:
- Empresario Individual (EI) (In English: Individual Entrepreneur or Sole Trader) which is commonly referred to as: autonomous, autonomous worker, freelance, etc.
- Sociedad Civil Privada (SCP) (In English: Private Partnership) which is the same thing but which involves more than one person and is formalised by a private contract.
The main adventages of these two options are:
- Registration at Tax Auhoritites and SS system is very quick (many times the registration process would take less than 3-4 days).
- They are the cheaper way for starting a business in Spain.
Do you prefer a company? In the following post, we will talk about the different kind of companies you can set-up in Spain. Contact us!
Jaime Segura & Associates – The way your law firm should be. Providing legal services all over Spain since 2003.
