Sector-Related Project Design

• Focus is placed on designing sector-related projects.
• Publication is by Proyectos Canarios Siglo XXI S. L.

ISBN and Legal Deposit Information

• ISBN non-compulsory, per Real Decreto 2063/2008.
• Legal Deposit excluded, per Ley 23/2011, Capítulo II, Artículo 5.
• Reproduction prohibited without written permission.

Project Design Topics Covered

• Classification of companies
• Formalities for creating a company
• Specific procedures based on company type
• Business simulation
• Sources of funding
• Support for young entrepreneurs
• Cost of financing
• Financing sources
• Links and bibliography included

Classifying Business Ownership

• Businesses categorized by ownership and liability.
• Public sector enterprises: Controlled by central, regional, or local government.
• Private sector enterprises: Created by individuals for profit.

Formation and Legal Structures

• Legal structures depend on number of people, minimum capital, and liability.
• Includes sole proprietorships, limited companies (S.L.s), and corporations (S.A.s).
• Specific types like Sociedad Limitada Nueva Empresa (S.L.N.E.) exist.
• Highlights on capital requirements, responsibility, and governing bodies.

Franchises

• Franchising reduces risk when starting a business.
• Involves transferring industrial or intellectual property rights.
• Includes technical advice from franchisor to franchisee.
• Requires economic compensation and/or percentage of profits.

Setting Up a Business Requirements

• Choice of legal form matters during the company constitutional process.
• Individual entrepreneurs face simple procedures, partnerships are more binding.

Assistance with Business Creation

• Telematic processing saves time setting up for certain legal structures.
• "Puntos de Asesoramiento e Inicio de Tramitación" (PAIT) offices offer guidance.
• Support includes technical assistance.
• "Centro de Información y Red de Creación de Empresas" (CIRCE) aids online procedures.
• Process uses electronic file creation and Documento único Electrónico (DUE).
• "Ventanilla Única Empresarial" (VUE) assists entrepreneurs with integrated services.
• VUE provides advice from network of centers and free services.
• Advisory/management services cost varies (700-800 €).

Step-by-Step Business Formation

• Required depending on type to establish legal personality.
• Varies with legal form.

Types of Business Structures and Processes

• Individual entrepreneurs: No specific procedure needed.
• Partnerships: Must fulfill requirements.

Requirements

• Certification confirms chosen name is available.
• The name must be available for your business concept.
• Name can be reserved, but only for a time.
• Registration: Public process which indicates any substantial changes.
• Documentation gets sent to Registro Mercantil Central (RMC).

Post-formation stages

• Steps to begin are outlined.
• Smaller requirements for some business types.

Obligations

• Obligations are listed based on Social Security and Treasure.

Procedures needed

• Replacing temporary tax ID (CIF).
• Must present various financial documentation to agencies.

Obligations regarding taxes

• Businesses register required book with Registro.
• Registro stamps ensure information can not be manipulated.

Obligations regarding social security

• Freelancers subscribe under RETA (Autonomos).
• If companies follow certain conditions, they may be bound under RETA.
• States when businesses need to subscribe to the Seguridad Social based on capital, relationship to companies etc.

Employment related tasks needed

• Businesses with staff register at the Seguridad Social office.
• Assigned work center with provincial security code
• The company does not have to re-request the registration should it open new work canters (barring location change)
• Employees are added though Régimen General
• New members are inalterable with previous Social Security requirements.
• Registration makes you an employee and provides you with a social security number that can not be changed.

Opening additional workplace rules

• Business needs to announce new address/establishment

Sealing logbook processes

• A log book stores inspectors thoughts during property inspection
• Business should have one set to record impressions, or no employees

Licence requests requirements

• In order to operate businesses need certain licenses; opening project, construction, operating projects, etc.

Registering intellectual property procedure

• Can register a copyright, logo, patent/idea and name

Registro Industrial details

• Indusrty based businesses need to register new companies
• A list of registrants will be shared to integrated industry registers, and centralised.

Operational activities details

• Professional activities need special/differerent regulations to set up
• May be specific needs based on locations

professional accreditation

• Indusrty regulations need certain accreditations based on regulations
• Proof must also be present, based on dangerous jobs etc.

Business assessments overview

• Installation companies must fulfil requirements
• Documents can be required on various professions

First Decision points for companies

• Consider which structure best reflects the nature of the company.
• The personality and activities of the company
• There are exceptions that need juridical considerations

Second decision points of legalities

• Aims to create new business
• Freedom to condition the objectives
• Business should fulfill legal form in concrete matter

Business structure overview

• Table indicating the business structure and considerations:
  • Is it a sole trader, partnerships, or limited companies?
• Requires the correct considerations

The amount of people needed

• Sole trader needs 1 stakeholder
• Companies are based on numerous stakeholders
• Societies need a capital
• Labour groups need stakeholders in the employment capacity

Important Capital concerns

• Sole-Traders can not subscribe to registro due to not being formed before a public figure
• All companies need a value-based activity according to juridical person etc.

Legal liability responsibilities

• Sole traders liability is limitless, the possessions of partners need covering.
• Societies need to cover their liabilities based on assets and partners.

Tax implications

• Freelancers need to pay IRPF, if based from earnings and profit.
• Firms need to pay taxes (like IRPF), based on activities.

Requirements needed for operations

• Companies must follow multiple legal rules
• Should you change as a sole trader, you've unlimited responsibilities

Brand identity questions

• Businesses make accessibility easy across customer relations
• You get a better opportunity across client trust

Getting started as a franchisor steps

• Start as an independent, financially/juridically sound franchisor/franchisee
• Provide all relevant information to help manage activity.
• You must complete royalty payments etc for profit
• Important concerns must be followed

Detailed considerations to acknowledge concerns

• Identify what is the brand essence
• Compliance and safety needed throughout organisation
• Evaluate experience regarding revenue projection.
• Seek business/operational understanding regarding key factors

Certification of social demographic concerns

• Ensure there are no identical organizations across the RMC
• Submit in telematical fashion.

Create statute with signatures

• Get appropriate bank accounts.
• All members must sign charter
• Ensure accurate information is stored.

Registering legal forms

• Organizations are obligated to make available records, but only if a cooperative has a need to.

Tax information

• The fiscal code needs signing across 036 form
• Provide a simple copy.

Payment responsibilities

• Sign required forms (ie 600)
• Must deliver to relevant council.

Registration responsibilities

• All societies must be registered, in tandem with general agreements, they must be listed

Tax collection related processes

• You can manage processes via 036 form.
• High levels will be based from 110 boxes.
• Individuals can use simpler types.

Taxation responsibilities

• Declaration must be made before payment responsibilities.
• It ensures that business knows all their individual, or organizational responsibilities and expectations.

Responsibilities for companies

• Payments should be up to date according to requirements.
• Certain exemptions take place regarding enterprises making below 1 million

Trámites en la Seguridad Social

• Employees must become registered
• A % of pay is attributed with future medical concerns
• Payments are described via cotización and are sum'd by pay

Employee standards

• Set in a general framework around 7%
• All processes are required for companies

RETA requirements

• Is a special framework for autonomos
• Is obligitory for individual entrepreneurs and some members

Employee membership

• Social security recognizes membership throughout.
• It is also possible for a work social security entity to take steps towards doing it.
• Work requirements are also needed
• The framework is enacted throughout employment in inspections

Communication guidelines for employment

• A document requires delivery via signature
• Communication must follow

Finances background

• Businesses need financial aid and sources in many forms.
• They should identify resources and have a process to follow

Capital seed investments

• Businesses can opt into various frameworks, or angel groups.
• You can use "cowdfunding".

Private resources

• Profits remain as form of resource.

Borrowed finances

• Involve generating a debt for a period of time

Finances via means of resources

• It means money is provided by partners.
• Banks will provide with partners investing their money.

Saving accounts

• Societies can retain bank accounts
• Saving bonds get acquired.

Venture capital

• Resources invested in companies
• Equity sharing is gained to push expansion

Angel Investors

• They invest to gain benefits
• Can help improve network
• Gives assistance freely

Crowdfunding background

• Requires cooperation
• Relies on investors.

Important aspects

• All aspects get handled through new contracts.
• Some need to be done again with a new application.

Savings guidelines

• Reserves ensure funds get accounted for
• Better conditions come through better bank options

Investment in innovation

• This is used to improve the "ecological signature"

Capital increases

• Companies ensure wealth can be acquired by partners
• There shouldn't be any societal shifts

Loans and other societies

• Companies in MAB take shares

Subsidies

• The administration can have different needs.

Legal reserves notes

• These help to improve stability

Reserve charter requirements

• Set percentages of revenues as profits

Volunteering related details

• These can act for particular times.
• It does this through external resources, but companies measure benefits
• Needs, and how that is obtained

Long payment period overview

• Often provided by lenders or personal relationships
• Other frameworks include banks.

Relatives or acquaintances loans

• Easier and privileged.
• However smaller amounts may be offered, more personal pressure.

Banks requirements

• The lenders/credidors return the money in time.
• The monthly fees are required.
• A "Aval" acts as collateral.
• Debt is transferred to a party should that happen

Financial Framework

• Some chains give payment details
• Has fees to deal with.
• Some businesses may have access

Debt securities details

• Financial tools assist in getting revenues
• A return can grow

Government programs

• Loan support ensures productivity.
• Instituto de Crédito Oficial (ICO) ensures help.

Short payment schedule terms

• Companies acquire lines of credit, and oversea payment options.

Lines of credit aspects

• There is a limited amount placed for transactions
• Interest is dependent on length

Checking account guidelines

• Consists of costing a superior process for current balances.
• Should not work you add into balance (should it pass).

Payments schemes

• These get made by buying schemes
• Low start costs help for buying schemes

Leasing aspects

• Lower costs are involved

Leasing framework

• Is an option with a purchase
• Often is initial expenditure
• Has a purchase on the contract is about

Rent payments details

• Includes spending
• Occurs with products.

Cashflow issues

• These gets influenced by suppliers
• Should have prompt payments across multiple entities
• Companies often work with providers

Payment delays

• Company has an account on that.
• It's often about delays.

Discounts overview

• Provider give discounts
• They allow for reduced pricing.

Confirming aspects

• It guarantees payment via payment systems

Loan Payment

• A payment option to suppliers comes in the form of credit.

Payment details

• The UE ensures obligations are met in 30 days.

Settlement terms

• Santander led initiative despite branding requirements
• Does not offer this opportunity

Factoring guidelines

• Operations occur with companies selling their debts to be released.
• The interest can be around 35%

Discount details

• Occurs with factoring
• It needs a transfer and a commission, and some may provide insurance too

Contract details

• The lenders never assume risks with the contracts
• The banks assumes full risk

The effects of the agreement

• Accepts almost all deals and conditions

Investment benefits

• Can create business centers, and co worker groups

Business incubator concepts

• Usually helps small business
• Usually will not provide assistance to old companies

Public incentives regarding financing

• Authorities are often the main financial aid regarding various functions.