The following article is about Buying On Hand Business In Spain. If you want to start up with a new venture in Spain and are not native to the place then, buying an already existing business is a better option to make a new start. Although there are many bumps in the pathway of buying an on hand business but still the job is not that difficult as it seems to be.
As the licenses, permits and even contracts do not expire with the change in the ownership, therefore it is quite beneficial to buy an already existing commercial enterprise. Moreover, a lot of time and money is saved and even the new owner does not have to survey about the need and demand of the products in the market.
It is quite possible that what you get is not exactly what you want but still it is relatively easy to modify an already established infrastructure rather than constructing an entirely new premise. But before you begin with any kind of renovations you have to take construction permits as per the construction plans.
Following are the two options available with you when you go for buying an on hand business in Spain:
1. Leasehold On Hand Business
2. Freehold On Hand Business
The distinction between the two kinds of businesses is generally made on the basis of legal possession and the investment that is initially required. The introductory cost associated with the leasehold business is much less than the expense for the freehold business but in case of leasehold business one has to pay some fixed amount of rent every month. The rent is liable to increments yearly as per the legal rules and regulations.
In case of freehold business the enterprise is under the possession of the buyer legally whereas in leasehold the buyer can only maintain and run the business but cannot possess the establishment legally. However after the lease period the contract can be renewed or modified so as to enable the buyer to legally owe the enterprise.
If you are setting up your business in Spain for the first time then it is highly recommended that you must go for leasehold business as it is quite speedy and easy to complete the formalities associated with a leasehold contract. Moreover, if at any stage in future you wish to move out of the business then you can sale the business to some other party as you are legally permitted to do this. But you are supposed to give certain amount of the selling cost to the owner of the lease.
On the other hand, when you buy a freehold on hand business, then you are required to complete all the formalities associated with buying an enterprise as per the rules and regulations of the government of Spain. It may include registration of the property purchased, VAT associated with the purchase. No doubt the procedure for buying a freehold business is lengthy and more time consuming but the benefit is that the enterprise is totally under your possession legally and you are not required to pay any rent neither monthly nor yearly.