HOW TO REGISTER AS A SELF-EMPLOYED PERSON ONLINE IN SPAIN.

CIRCE

Speed up your business with these tips "How to register as self-employed online in Spain. CIRCE". Analyse and discover this TIP!

All entrepreneurs who want to set up a business in Spain have to register as self-employed, whether you want to work as an "individual entrepreneur" or with other partners in the form of a "partnership". When the promoter team (+) wants to join together to create a company, it is usual to create a limited company, in which those who act as administrators must register as "self-employed corporate" (+).

Registering as self-employed has many advantages: access to subsidies (EOI acceleration programme), financing... as well as allowing you to issue invoices to your clients in order to get paid, in fact you cannot issue recurring invoices if you are not previously registered. To become self-employed online without leaving your home, CIRCE is your online tool. In addition to being able to set up a company, CIRSE also allows you to register a self-employed person online. This is a very effective method for entrepreneurs who are going to start their own business, as it saves time in terms of travel and paperwork, as well as costs. At CIRSE you will be able to receive all the notifications for the process of setting up your company by SMS on your mobile phone. As you complete the most important steps, you will receive messages on your mobile phone informing you of the progress.

Initial formalities for registering as a self-employed person

The first thing the entrepreneur must do to register as self-employed is to fill in the Single Electronic Document (DUE) at one of the Entrepreneur Service Points. This will be the only trip that will be necessary. Alternatively, you can fill in the DUE yourself, following the instructions and tutorials available on the official website.

Once the DUE has been sent, the telematic processing process begins. From this moment on, the system (STT-CIRCE) is in charge of sending each corresponding body the procedure that corresponds to it. This is why it is very important (and obligatory) for the entrepreneur to review and sign the DUE before sending it. It is also advisable to request a copy of the DUE that has been associated with your file in order to be able to verify all the information at all times, in case any problem arises during the process.

Documentation required for the DUE

IN ORDER TO COMPLETE THE APPLICATION FORM, THE FOLLOWING DOCUMENTATION IS REQUIRED:

1. DNI Original and photocopy of the future employer (and of your employees, if any). 
2. Foreigners who do not have a DNI must provide a NIE or NIE and a residence and self-employed work permit.
3. Social Security card and photocopy of both the self-employed and workers, if any. Any other report that accredits the Social Security affiliation number is also acceptable.
4. If the self-employed person is married, the DNI or NIE of the spouse and the regime under which the marriage is constituted must also be submitted.
5. In order to be able to hire workers, the contract or agreement to register with the Social Security.
6. Bank account number for direct debit of self-employed contributions.

IN RETURN, THE DUE OFFERS AND PROVIDES THE FOLLOWING INFORMATION:

1. The heading of Economic Activities.
2. Activity code according to the National Classification of Economic Activities (CNAE).
3. Details of the company's address and business activity (square metres of the site, postcode, telephone number, etc.).
4. Adhesion to the Special Scheme for Self-Employed Workers with your chosen contribution base, Mutual Insurance Company for temporary incapacity and whether you will opt for coverage for accidents at work and occupational diseases.

Online procedures and formalities

Once the DUE has been completed, the first thing to do is to send it to the Social Security General Treasury. Once there, the institution itself the following procedures and data are generated:

1. The Quotation Account Codes.
2. The employer's affiliation, as well as the employer's registration in the Special Regime for Self-Employed Workers (RETA).
3. The affiliation and registration of workers (if you are already hiring employees).

The Social Security then returns the corresponding codes to the CIRCE system. The DUE is also used to notify the Tax Agency of the start of the self-employed activity by means of a Census Declaration.

BUT, IN ADDITION, THANKS TO THE COMPLETION OF THE DUE, THE FOLLOWING FORMALITIES CAN ALSO BE CARRIED OUT COMPLETELY ELECTRONICALLY:

• The Trademark or Trade Name reservation application at the Spanish Patent and Trademark Office (SPTO). This procedure is used so that with the registered trademark or trade name, the self-employed person (or company) has the exclusive right to prevent third parties from marketing the same products or services with the same distinctive sign. This is an optional procedure, but it can be carried out online by sending the DUE.
• Application for licences at the Town Hall. Those councils that collaborate with the CIRCE system, or are members of the Emprende en 3 project, may apply for the relevant licences, or the responsible declaration, if necessary depending on the type of activity to be carried out.
• Notification of employment contracts to the State Public Employment Service (SEPE). 
• Legalise the status of employees who have been hired (if they have been hired).

Procedures excluded from the online system CIRSE

It is important for entrepreneurs to be aware that there are still some procedures that are not available online. Therefore, these will have to be carried out in person. Communicate the opening of the Work Centre when you have employees (the Region of Murcia and the Community of Madrid are already included online...and other regions are being integrated).

• The disposal and certification of accounting books.
• Registration with any other official body, if applicable.

Entrepreneurs who are going to register as self-employed in 2022 must take a few steps before starting their commercial activity on a recurring basis... a few invoices while your model is valid or without invoicing the minimum interprofessional wage (SMI). First, you will activate the registration with the Social Security. More specifically, in the Special Regime for Self-Employed Workers (RETA).

Registration with the Economic Activity Tax (IAE) of the Inland Revenue. It should be borne in mind that not all entrepreneurs are obliged to register with the tax authorities, so they should check beforehand whether they are required to do so in order to carry out their activity. The Social Security asks self-employed workers for their affiliation number, ID card number, date of commencement of activity, details of the address of the professional activity, contact details, the Economic Activity Tax (IAE) code and the National Classification of Economic Activities (CNAE) code, and an account number for direct debit of payments.

Compulsory registration with the tax authorities (see+)

When you register as a self-employed person, you can hire other people either as an employee or as a self-employed person. To do so, you must be registered as an employer with the Social Security. The Contribution Account code will be assigned there. The worker will be registered through the RED system. Once this has been done, the State Public Employment Service must be informed of the recruitment in a within a maximum period of 10 days by submitting a copy of the employment contract through Contrat@. The employer must pay the employees' social security contributions. Those who start their activity without being registered with the Social Security may face fines of between 300 and 3,000 euros.