Advice wanted How do you start a business from scratch in Tenerife? [Archive]

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honda

03-01-2013, 12:21

Fivepence

03-01-2013, 12:28

Looking for info...... What is the best way to start a business from scratch. I have not run a business in Tenerife before so know very little about starting up, registering, paying taxes and all involved with becoming a legal business.
Any advice would be a big help, thanks.

Sorry I can't help you Honda but there are lots of members with experience and I'm sure they'll be along soon with advice.

Good luck and best wishes. :goodluck:

On a lighter note, I have been viewing the forum for a number of years and during that time I seem to remember an old adage kept cropping up: -

'If you want to be a millionaire in Tenerife, the best way is to start with 5 million' :whistle:

Honda, I've found this thread from last year and it may help...take a look at the link below.

Starting a business in Tenerife (http://www.tenerifeforum.org/tenerife-forum/showthread.php?6438-Starting-a-business-in-Tenerife)

Malteser Monkey

03-01-2013, 12:36

Sorry I can't help you Honda but there are lots of members with experience and I'm sure they'll be along soon with advice.

Good luck and best wishes. :goodluck:

On a lighter note, I have been viewing the forum for a number of years and during that time I seem to remember an old adage kept cropping up: -

'If you want to be a millionaire in Tenerife, the best way is to start with 5 million' :whistle:

and that was in pesatas:wink2:

Balcony

03-01-2013, 12:54

Start by making a business plan. That means writing it down, realistically: who you are, what you're good at and what business you want to start. Determine who your business is aimed out. What else can come out of the basic idea?

Have you got money to sustain yourself before the business starts to operate and once it does? How much and how long will that money last?List what assets you have and what assets you need to acquire to start and sustain your business - that is both your own skills and the physical assets e.g. premises, tables/chairs etc.

Use a spreadsheet (Microsoft Excel, for example) to map out a list of costs for each month for the following 2 years. Then determine the income you need to cover those costs and provide a profit. Analyse your figures carefully and make sure they are realistic. Build in contingency costs.

Where does your business need to be? Trading hours? Employing people?

Get an accountant to deal with tax and other fiscal matters. Use a gestoria to get your licences etc.

honda

03-01-2013, 13:55

fesdie

03-01-2013, 14:03

Make an appointment with Golden Maniac from the forum who will give you all the info you need in a straight forward, honest manner.

casabonny

03-01-2013, 17:28

You will need to register yourself as self employed with social and also as a fiscal resident with Hacienda.You will have to consider whether you need premises, if so an opening licence will be necessary.I think you will find that do this legally your qualifications will have to be registered here ( or maybe in the mainland ) with the college of locksmiths ( i seem to recall seeing this in the Locksmiths I have been to before).Are you goin g to be an individual or an S L ( ie Ltd Company ) , you will need good public liabilty insurance and if using a vehicle for the buisness then this too must be Insured as a commercial vehicle and I beleive you would have to have a Trajeta de transporte ( perhaps not but you would need to check this one out with the local town hall.)

Its not cheap to set up as a genaral rule and you must of course factor in the fact that all your suppliers here will only speak Spanish and unless you do then you may struggle.If its your intention to import the stock you need you will have to do this legally as an import adn pay the appropriate taxes otherwise it is not claimable and you may set alarm bells ringing in HAcienda before you even get off the ground!
We have set up from scratch three business since we have been here , sold two on and the third we are currently running.

Good luck, but gather lots of information before you start.

honda

03-01-2013, 18:23

Casabonny, thank you. This is just the kind of info I am looking for, not just the plus's of starting a business here, but the pitfalls of starting out in Tenerife. Too many people think it's a fantastic place to live and work, with out looking into the legal side of things. It's not the bed of roses people think, living in Tenerife. Holidays are great here, but to make a living is something else. Although everyone in Britain thinks we are money bags because we live on this island.
Many folk have told me not to go legal, and pay out loads of money, but as a locksmith, working without being legal is basically breaking and entry.
Something many estate agents don't realise when they get their builders to change locks on properties.
Keep the advice coming. Don't know how I could live in Tenerife with out this forum.

9PLUS

21-03-2013, 02:02

That's ironic

YOUNG GOLFER

22-03-2013, 00:38

A little pop at agents might not be the best way forward when looking for work.........but good luck all the same hope things work out for you. And let us know when or if you decide to go legal and start up your business.

carpenter

22-03-2013, 13:41

honda I may be wrong but I think you have to specify exactly what you want to do professionally. If it's a locksmith then you pay the relevant taxes and social that is associated with that trade.
You can only put materials through the books that are again relevant to that trade!
You can't start putting plaster board and hep pipe through your books as it's not something a locksmaith uses.
But if you register as a labourer then there are not many restrictions to what materials you can put through you books. But this costs extra in social payments each month and it may not let you be a bona fide locksmith!
It's a very communist system. you pick a trade and you can only do that trade, paperwork paperwork paperwork paperwor paperwo paperw paper pape pap pa p.............................
They don't make it easy that's for sure

Goldenmaniac

22-03-2013, 17:18

Thanks guys. I should say that I am not looking to open a shop or bar. I am a uk associated locksmith looking to start out on my own, here in Tenerife. Also handyman service, as I have qualifications in plastering, plumbing and tiling.
Hoping that the locksmith side of things will take off as everyone here seems to be builder or handyman.
Only outlay is tools and stock, which I already have most, and business start-up.

honda This is the organisation that would vet your qualifications http://www.uces.es/unete.php and it lists how you get your company accredited. It's going to take a minimum of two years and without a decent level of Spanish you may struggle.
http://www.cerracor.com/crea_UCE.pdf

Don't want to pee on your parade but a simple yellow pages search http://www.paginasamarillas.es/search/cerrajeros/all-ma/santa-cruz-de-tenerife/all-is/all-ci/all-ba/all-pu/all-nc/14?cu=cerrajeros+santa+cruz+de+tenerife produced 205 locksmith companies in Tenerife.

You may, as Carpenter said do better to generalize to start with, although on the downside if you do that you will not be counting towards your accreditation period.

Also have a look here for general advice on working for yourself here http://www.diana-mcglone.com/#WorkingforyourselfinTenerife.

And the Chamber of Commerce New Business start up service here (only in Spanish) http://www.creacionempresas.com/

honda

22-03-2013, 21:57

Thank you for all of your help and advice. I have decided against starting a business here in Tenerife and may be moving back to the UK for start up.
I am amazed at what it takes to start out here, no wonder Spain is in so much trouble. My mistake is to think that in the interest of the country, all government offices would encourage self employment and start up for new business's, but like every thing else, it looks like you get no help. No wonder there are so many people working illegally.
Thought there may have been an opening for a UK Locksmith as Brit's tend to stick to Brit's when wanting work done. I know there are many registered Locksmith companies, and some are very good I am told, but same as every where else, most will be drill men. No great skill in drilling out a lock and damaging doors, windows etc. to gain entry.
Only chance I have of using my qual's in this united Europe is to go to the snow.:cold::rain::shiver:snowflake::sick3::surrend er::fever::sick::snowman::cry:

9PLUS

22-03-2013, 22:17

I only know of 3 locksmiths here in the south and have shops, all seem busy and all have trained in the UK, If i remember correctly Manchester.

René

22-03-2013, 22:37

I would normally not recommend anyone to come to tenerife to start a business, but for a good locksmit i would like to make an exception. We have normally a lot of work for a good and reliable locksmit.

I am happily willing to work with you.

Goldenmaniac

23-03-2013, 10:08

.......
I am amazed at what it takes to start out here, no wonder Spain is in so much trouble. My mistake is to think that in the interest of the country, all government offices would encourage self employment and start up for new business's, but like every thing else, it looks like you get no help. ...... To be fair there is a lot of help for start-ups - from the chamber of commerce, and from the local authority development agencies, but you need to communicate with them in Spanish.
But I agree totally about the bureaucracy, the latest nail in small trader's coffins was the elimination of the exemption threshold for small traders for IGIC at the beginning of the year (not minoristas - retailers they're different) It was a defacto increase in prices of 7% for service providers, eg hairdressers, small builders, and me!, none of it going in to our pockets!! Put that together with crippling social security payments and I agree there's no encouragement at all.

But there are successful Brit businesses here and not all of them illegal :)