If you want to start a business in Spain, you can either create your business and therefore limit your liability (equivalent of limited liability company), or become a self-employed person.
If you choose to start a business in Spain, you can either create a limited liability company or a public limited company. In both cases, you will limit the liability of the company's capital.
In Spain, it is more advantageous to start a business rather than becoming a self-employed person in several situations:
- if you do not reside in Spain. In this case, becoming self-employed person is impossible,
- if you want to work with other countries and not only in Spain, that is to say, to buy or sell abroad,
- if your activity will lead to large transactions. Create a business will give you some cover in case of problems.
If you choose to become a self-employed person in Spain, your social status is coincident with that of the company and your liability is unlimited. This is interesting when you open a small business with only one employee. Indeed, in Spain, the charges will be lower than those of public limited company because you will not have to pay any corporation taxes or contributions.