There are plenty of reasons why setting up a business in Lanzarote appeals to so many. The idea of being your own boss in a country with Lanzarote’s perfect climate is an obvious draw, but there are other benefits too.
Setting up your own business can be the most appealing and lowest cost option to allow you to move abroad and control your own life. Starting up a new business in Lanzarote is easy and straight forward and thousands of expats have already made the step, although you do need to be sure that you have the necessary licenses to do so.
An abogado (lawyer) or an asesoria (accountant) can do this for you. If you have business premises you will need to make sure you have a licence for those as well, this is called a Licencia de Apertura. Your business can be run by you as a self employed person, in which case you will be trading as an individual, as a partnership or as a limited company. As an individual, you should refer to our article of being self employed here in Lanzarote.
A partnership is referred to here as an SCP. You can have as many partners in the business as you like and they are all responsible jointly for the business and should have a share of the profits based on their share of the business. You will need a constitution for the business, which defines the role and scope of the company. The business will be issued a fiscal ID number of a CIF.
A limited company here is called SL, and all of the above applies, but additionally the SL must have an administrador named (effectively the managing director) who takes responsibility for the correct running of the organization. Rules and regulations are quite strong for an SL, but you will enjoy the protection that your liability is limited in the event of the business failing.
You must have at least €3000 of capital to set an SL up, and this must remain in the company at all times, either in the form of cash or assets. Lanzarote is still behind the times in terms of the products and services available to residents and tourists, therefore there are many opportunities for entrepreneurs to start new businesses here.