Opening a business in Tenerife
Obtaining and creating a good business name in Tenerife is your first step to opening a business in Tenerife. You can then decide to register your business name with Spain’s Business Name Registry (Registro del Nombre Comercial), which in theory gives the name holder the exclusive right to use that name for commercial purposes. Tenerife Business name registration is optional and is handled by the Industrial Property Registry (Registro de la Propiedad Industrial). When you register a business in Tenerife, you will need to provide proof of registration for IAE tax (Impuesto de Actividades Económicas).
Tenerife offers several legal business structures, also known as business entities, to suit a variety of needs, each one with a different set of legal and fiscal responsibilities. Choosing the right one is important to accommodate your business-to-be’s present and future goals. The legal business structures in Tenerife are:-
Sole Trader or Sole Proprietor (Empresario Individual or Autónomo)
Comunidad de Bienes (C.B.)
Partnership (Sociedad Civil)
Public Limited Company, or Corporation (Sociedad Anónima or S.A.)
Limited Liability Company (Sociedad de Responsabilidad Limitada, S.R.L., or S.L.)
New Enterprise Limited Company (Sociedad Limitada Nueva Empresa)
Worker-Owned Company (Sociedad Laboral)
General Partnership (Sociedad Colectiva)
Limited Partnership (Sociedad Comanditaria)
Cooperative (Sociedad Cooperativa)
If you want your business in Tenerife to be successful, you need to sit down and create a business plan. This will direct you and if created well will inform you of local competition, price structures and important details which may go overlooked.
There are two important points to consider when creating your business plan in Tenerife
Language. If you plan on looking for Tenerife financing or investors, your business plan needs to be in Spanish. On the other hand, if you plan on looking for a combination of Spanish and international investors, you should have both a Spanish and English version of your business plan available for everyone involved.
Getting help. The local Chambers of Commerce in Santa Cruz de Tenerife (Cámaras de Comercio) offer free business plan advice and support for entrepreneurs. Find a Chamber of Commerce in your area.
Further Reading: Bar Trade Tips: A Successful Start Up