Enterpreneur and Small Companies
Begin your own business is not an easy or simple task. We must take into account many different aspects and also overcome obstacles and problems that often have not been before you start. All this requires a high degree of involvement, effort, desire and work and is rewarded with the satisfaction of carrying out the project successfully.
Our aim here is to offer a specific comprehensive advice for entrepreneurs and Small Companies which would enable a quick and effective response to the doubts and difficulties that may be encountered during the development of its project in the legal, tax and accounting areas. We also offer to help the entrepreneurs in planning, executing and performing all operations that are necessary in a first phase, to settle the business, and then to grow the business in a simple, effective and prompt manner, taking into account the variability and changes that every business suffers today.
Our main services in this area are:
Planning the optimal legal and tax structure taking into account the characteristics of the business and forecasting future developments.
Accounting services for small companies.
Incorporation of companies, preparation of bylaws, making all necessary arrangements to have the operating company, according to the project to develop.
Register in all legal and tax records.
Advice on specific corporate transactions, study and planning of the business in terms of legal and tax perspective and analysis of specific deals.
Continuous monitoring of the business and special adaptation to legal and tax changes that are occurring and that may affect it.
Frequently Asked Questions:
Do I have to do to be “autonomo”?
To be “autonomo”, that’s to say, self-employed, you must register to the Inland Revenue, using the Form 036. In this Form it is noticed that the activity will be developed and where it is exercised.
You Also have to register to the Social Security as self-employed person, and choose the amount of quota to be paid, it can be from € 267.04 to € 1,084.72 per month. There are reductions depending on the characteristics of the entrepreneur.
What is better: to be independent or to set up a company?
This is an issue that raises many doubts, and that is very difficult to answer in only one way, because each case has to be evaluated and considered separately according to the specificities of the business.
It has to be kept in mind that if you are self-employed, the profit of the activity is taxed in your Individual Income Tax (IRPF) and can be subject to a maximum tax rate up to 49%. On the contrary, the companies are taxed at a rate of 15% the first two years and 25% thereafter. But it is important to consider that maintaining a company involves a number of fixed costs of accounting, legal and tax that don’t exist in the case of self-employed, but on the other hand, a company is a way to reduce the liability of the business.
Do I have to go to the notary always?
There are certain transactions that must be documented in a public deed. In case of a self-employed person, it is no frequent that you need to go to the notary.
The companies case is different, the constitution must be notarized and the sale of shares and any amendment of the articles of association too (increases and capital reductions, compensation and change of directors, change of name, legal address and closing date of exercise among others).
What Forms do I have to fill in?
Usually, the Forms to be filled in are the VAT and withholding tax in the case you have hire employees or freelance.
If the activity of the business is not considered a professional activity or the% of income subject to withholding does not exceed a certain level, in addition there are some installment payments on account of Annual Individual Income Tax (IRPF) to be done quarterly. They have to be the 20% of income for that period and are deductible in the annual tax form (IRPF).
When do I have to fill in the forms?
Tax Forms have to be filled in usually, April 20th , July 20th , October 20th and January 20th 30th . If the annual turnover is over 6 million, the forms have to be filled in monthly.
The Individual Income Tax (IRPF) has to be filled in during the months of April to June.
In the case of companies, income tax is presented from 1 to July 25 (years ended December 31).
Do I have to make the accountancy records?
Any employer who is an individual under the regime normal direct estimation or company is required to keep accountancy records in accordance with Generally Accepted Accounting Principles in the case of normal direct estimation and following certain principles. It is also very important to reflect all income and expenses in accounting and in the registers, because they are not recorded the Tax Agency does not accept deductions, eg VAT amounts that are not properly entered in the record books.