Company registration in Tenerife

Tenerife is a special economic zone, and enterprises registered on the largest island of the Canary archipelago enjoy tax preferences. Spanish law and the legal system are applicable to the jurisdiction; enterprises are opened there in the same forms as in Spain. At the same time, Tenerife is an offshore zone, which provides benefits when investing in local manufacturing and shipping business. Taxes must be paid on the company establishing (1% of the authorized capital), real estate and economic activity – depending on the focus and scale.

To work in an island, a company must:

• certify the signature of the owner as the manager of finances in a bank;
• pay municipal fees;
• hire a manager (Spanish citizen/resident) and an individual secretary (there are no requirements for his residence);
• submit reporting once a year: the auditor assures it if all assets exceed 395 million pesetas, sales revenues are above 790 million pesetas, and more than 50 employees are employed during the year;
• keep accounting registers and books of acts, shareholders, registered securities, sole proprietorships, a register, etc.

Registered Companies

A company in Tenerife is registered as an analog of JSC or LLC, a company with joint ownership, a company with unlimited liability, a partner community, a cooperative. The first two options are the most common. In the joint-stock company (S.A.) the authorized share capital cannot be less than 100 million pesetas, a quarter of the amount is paid at the registration stage. In S.L., similar to Russian LLC, the capital starts from 500 thousand pesetas, but it is paid at once and in full volume.

In both forms, the responsibility of the owners is limited to the invested funds, one person is entitled to create an organization, there are no requirements to his residence. The following information is entered the statutory documentation:

• the full and short name of the organization;
• goals and directions of activity;
• the address where the company is located, office;
• the amount of the authorized share capital and the size of the participants’ shares;
• the structure of the governing body – the administrator, the council (from three people);
• for S.A. – information about the meeting of shareholders, the decision-making mechanism.

The costs and rules of work of popular forms are similar, as well as the tax rates. But in general S.A. is more convenient for large business, S.L. is more flexible in management.

Registration procedure

Company registration in Tenerife begins with the conclusion of the contract with the representative-assessor and assignment a name to the organization. The application is submitted to the register, consideration takes up to a month, permission for registration is valid for two months. Next, you need to:

• open a bank account and deposit a part of or the full amount of capital – if it exceeds a million pesetas, then according to the currency regulation rules, the authorities are separately notified when it is transferred in full;
• to notarize a package of constituent documentation in the notary office – the founders and the administration must be present;
• make a seal of the enterprise;
• submit a package of documents for registration, having paid a fee of 1% – the Chamber of Commerce enters the company in the national registry;
• get a tax number and, if necessary, a business license;
• pay municipal taxes and fees;
• notify the office of the Labor Administration on the company opening, register employees in the social insurance service;
• if the office provides for a repair – to receive a municipal license for the works.

Experts of “Prifinance” company will help to pass the formalities without a loss of time and efforts. They will undertake the procedures organization, provide legal, tax and financial advice.