What are the legal steps to setup a new business in Tenerife?

[AlexCole]

Hi,

I want to operate business in Tenerife as individual entrepreneur and want to know where to start and what cost I will have.
What would be cost and legal steps to make my business operation legal? Where to start? This will be business operated in the streets of Los Cristianos (tourist area). Business related with attractions.
Where do I have to register business, how much time it would take and how much this would cost?
Do I need to have some license?
Do I need to be resident of Tenerife to be able to operate this business?
What would be approximate cost of accountant?
What would be the VAT etc.?
If I operate as an individual can I employ another person, who help me on working on the street?

The necessary mobile equipment will be shipped by the ship. How can I get to know approximate customs and VAT? Shipping will be from non-eu country - Hong Kong.

Many thanks :)

[TenerifeTeddy]

Hi and welcome to the forum :)

You have asked a number of questions, I will try and answer those I can.

Contact member goldenmaniac on here who can help you with all the paperwork.

To set up as self-employed or autonomo as it is called here, you need to first get an NIE number which is a fiscal number and then you can apply for autonomo. The cost of the autonomo varies with age but we pay €279 per month.

If you are working on the streets you would also need a street traders licence.

The cost of an accountant would depend on how much work you need him to do. For my business, for all the accountancy and employees contracts and nominas etc is it €190 per month.

You have to be registered for IGIC (Canarian VAT), rates vary depènding on what you are selling, but most services incur 7%.

You can employ another person. Legally they would need to be on contract, temporary at first, permanent later, and you would pay their Social Security at around 40% of of their wages.

I can't help you much about importing goods. Most goods incur an administration fee and then taxes of around 7%.

Hope that helps, but as I suggested earlier, please contact member Goldenmainiac, who will be able to give you more accurate information and help you with your applications.

Good luck.

[9PLUS]

Hi,

I want to operate business in Tenerife as individual entrepreneur and want to know where to start and what cost I will have.
What would be cost and legal steps to make my business operation legal? Where to start? This will be business operated in the streets of Los Cristianos (tourist area). Business related with attractions.
Where do I have to register business, how much time it would take and how much this would cost?
Do I need to have some license?
Do I need to be resident of Tenerife to be able to operate this business?
What would be approximate cost of accountant?
What would be the VAT etc.?
If I operate as an individual can I employ another person, who help me on working on the street?

The necessary mobile equipment will be shipped by the ship. How can I get to know approximate customs and VAT? Shipping will be from non-eu country - Hong Kong.

Many thanks :)




I recommend you speak to a professional Goldenmaniac

[AlexCole]

Thank you for advice.
I contacted Goldenmainiac already.

[Goldenmaniac]

Street trading is notoriously difficult to get a licence for, more so in some Ayuntamientos than others, although of course it depends on the actual product and it is most definitelly worth a visit to check with the local authority concerned regarding the specifics of your business proposal, which might be just what they were looking to promote!
The main obstacle to overcome is the "closed shop" attitude of the retailers who are trying to tell the same product.
There was a case in 2011 where complaints from traders in Los Cristianos brought pressure on the local authority and they withdrew the licence they had alreay given to a mobile food vendor company.

In terms of general self employment requirements there is some info here http://www.diana-mcglone.com/#WorkingforyourselfinTenerife.

[tracey]

For importing any goods from outside the EU, you will need copies of the EU safety certificates for the goods and original Bill of Lading and invoice. You will pay 7% import tax, plus a handling fee for the port (varies in cost). If you go to the cargo area of the airport, an import agent will tell you exactly what you need for the particular products
.