Buying or selling a business

There are many different reasons why people should want to buy or sell a business, from new ventures and expansion to withdrawal from a market and retirement, all of them bring their own unique set of challenges.

There are lots of issues to consider and the ‘to do’ list can seem never ending:

• If a business closes, what will happen to its employees and its customers?
• Tax obligations are always important to business whether starting up or closing down.
• Meeting contractual obligations to suppliers both new and old.
• How do you undertake due diligence in Spain?
• What are obligations to existing contracts whether they are with customers, supplier or employees?

But the main areas where we found our clients have come unstuck are whether or not you have to be a resident in Spain to run a business and the misconception that you are able to buy a company off the shelf just like you can in the UK.

Firstly, you don’t need to be a resident in Spain run a business there but you will have other obligations like an NIE, employee rights and health & safety.

Unlike the UK, you cannot buy a company “off the shelf”. Companies must be created to meet the unique needs and circumstances of you and your intended business.

Not understand small differences like this can cause headaches in the future and finding your way through the maze of bureaucracy especially if you aren’t fluent in the language and don’t know who you should be speaking to can make a stressful situation worse.

The wonderful Spanish mañana approach to life which attracts people to Spain by the millions can become frustrating especially when it goes hand-in-hand with Spanish Bureaucracy which can sometimes seem to conspire to make life difficult.

So whether your business is expanding or contracting, starting a new venture or ‘closing up’ shop, you can find out what you need to do to buy or sell a business in Spain easily and effectively by contacting the team at Irwin Mitchell Abogados.

Call us now on 00 34 902 150 105 to arrange a consultation, or use the links above to drop us a line.