One of the most frequent questions that arise when a limited company is formed is whether it needs to have workers. In this post, we address your queries on this topic.
A limited company must always have at least one worker (with a work permit in Spain) who must contribute to Social Security. If you establish a company in Spain and initially you cannot or do not wish to hire any additional staff, the worker may be the same as the administrator of a limited company.
How are temporary residences and work permits applied for?
The residence and work permit is a temporary authorisation of residence and permission to work issued to someone who does not reside in Spain, enabling an employer to hire them. The requirements that must be met are the following:
– The worker must not be a citizen of the European Union.
– The worker must not be irregularly in Spain.
– The worker must not be prohibited from entering Spain.
– The worker must not be within the term of commitment to return to Spain that they have assumed upon voluntarily returning to their country of origin.
– The corresponding fees for processing must be paid.
– The national employment situation allows hiring.
– A contract signed by employer and worker must be presented.
– The conditions of the contract must comply with current regulations.
– The employer is registered with the Social Security Regime.
– The employer has financial means.
– The worker has the training and professional qualifications for the position.
Can the worker be the sole partner and administrator?
In Spain, limited companies do not have a minimum limit on the number of partners, so there can be a single partner. This partner may perform the function of the administrator, in which case, depending on the circumstances, he may have the labour or commercial relationship with the company.
According to article 136 of the General Law of Social Security, individuals can be registered if they meet these two requirements:
– That they perform functions that do not involve the management of the company.
– That they do not have control of the society.
If these two requirements are not met, you must process the registration as a self-employed worker.
The directors and administrators of a limited company may have an employment relationship with it, by signing an employment contract, but they will not be entitled to unemployment benefit.
As a consequence of all the above, it is essential, if you want to set up a limited liability company in Spain, to have the advice of an expert lawyer in tax and commercial matters to help you:
– Choose the form of company that best suits your case.
– Comply with the regulations regarding the existence of workers in the company.
– Establish the relationship of partners and administrators to the company.
– Comply with the legal and fiscal obligations of the company.
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