CORPORATE SELF-EMPLOYED

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The entrepreneur of a project is said to be a "corporate self-employed person" when he/she carries out his/her activity through a commercial company, rather than as an individual self-employed person. The company may be a limited company, a public limited company or any other form of commercial company.

The advantages of being a corporate self-employed person include

1. Separation of property: the creation of a commercial company allows for the separation of personal assets and company assets, which can provide greater protection in the event of debts or corporate liabilities.
2. Reduction of fiscal costs: some forms of commercial companies, such as the limited company, may allow for a reduction in tax costs by applying more favourable taxation.
3. Increased credibility: the creation of a commercial company can provide a more professional and credible image for the company, which can help to attract more customers and partners.

However, being a corporate self-employed person can also entail some disadvantages, such as greater administrative complexity and a higher tax burden than for an individual self-employed person. It is therefore important to carefully assess the advantages and disadvantages before deciding to become a corporate self-employed person.

Current legislation in Spain states that it is compulsory for the commercial company (SL, SA....) to have an administrator, chosen from among the partners, and that this administrator must be self-employed.

Who must be self-employed in a limited company?

This obligation is determined by 2 criteria that mark the involvement in society:

• The percentage shareholding.
• Whether or not the partner in question is a manager.

A SHAREHOLDER OR WORKER OF A SL IS OBLIGED TO REGISTER AS A SELF-EMPLOYED PERSON IN THE FOLLOWING CASES:

• It holds more than 50 % of the capital, even if it does not exercise management functions.
• Holds less than 50 % of the capital, but lives with immediate family members who are partners and the sum of the shares exceeds 50 %.
• It holds at least 25 % of the shares and exercises management functions.

In the other cases that are not reflected here, it is not necessary for a working partner to be registered as self-employed. If a partner does not have 25 % of capital and performs managerial tasks, he/she can opt for the assimilated general regime. On the other hand, a director of an SL with a 33 % shareholding who is not a manager will pay contributions under the General Workers' Scheme.