Aspirations of operating a successful business in Tenerife are easier to achieve than you may realise. It may appear a daunting prospect, due to perhaps, your lack of knowledge and understanding of the procedures, laws and regulations in Spain. Tenerife offers plenty of the right ingredients for a successful business, however, it is important to receive the correct professional advice at the outset of your venture.
TENERIFE ROYALE ESTATE AGENTS S.L. is able to offer you a complete comprehensive service to ensure that you receive every assistance in sourcing and operating a successful business. We DO NOT employ sales personnel. Your dealings with our company will be with a senior member of staff who will simply ensure that you receive the correct information and advice in a friendly professional manner. We will not 'sell you' a business, we will, however, assist you in finding a business venture that suits your skills and ensure you receive all the facts together with appropriate legal counsel.
Due to our independent status, we are able to 'network' with the majority of Estate Agents (licensed only) in Tenerife. This means that we can offer our clients an extensive portfolio of business opportunities together with a market research service. Simply provide us with a 'brief' of the type of commercial venture you are seeking. We will then provide you with a comprehensive market report of the opportunities that are available that 'fit your brief'.
Obviously, this research is undertaken without any obligation or cost to you, whatsoever.
You have access to our expertise at all times and all at no cost to you. We provide a complete comprehensive service. This includes; airport collection, accommodation for inspection visits, market research and business viability reports. Preparation of purchase contracts and legal counsel from independent solicitors. Acquisition of identification numbers (N.I.E.) and residencia requirements. Opening of bank accounts and advice from independent accountants. Setting of new companies or partnerships, etc., etc., and of course, following the 'set up' of your business venture you have the benefit of our ongoing support and advice on any matter concerning your business. With our help, dedication from you, sensible planning and production of proper 'viability's, most people can develop a business into a solid profitable venture.
Let us look at some of the features that Tenerife has to offer to you:
- Businesses- especially Bars and Restaurants enjoy 12 months trading per year.
- Bars, Restaurants and Businesses receive tax incentives and other benefits.
- The lifestyle in Tenerife offers a safe and secure environment for business people.
- The crime rate is low with effective policing.
- Tenerife is in general a 'cash driven' society. There is little credit expected or given, thus less credit liabilities.
- Business taxation is flexible with a choice of Module Tax for bars and restaurants.
- A full range of quality professional services are available to support you (i.e. TENERIFE ROYALE ESTATE AGENTS S.L. together with accountants, solicitors, etc.,).
- Tenerife has grown rapidly into a successful and popular international destination for tourists and businesses. There is a growing need for tourist related businesses and increased demand for the service industries that sustain the ever increasing number of tourists, residents and businesses.
Your Working Capital
It is important to use your initial working capital wisely. It is unwise to spend almost all your capital on purchasing the business, if you cannot sustain the initial 'set up' costs and possible low initial turnover. Some funding to support the business may be required in the first few months, therefore, it is important to predict every bill you will receive and endeavour to cover all eventualities. With our help, this can be forecasted by producing a viability of the proposed business together with a business plan.
Your business may involve the providing of a service or commodity to tourists. It may be that you are beginning an enterprise to which you have no previous experience, or continuing in your own profession. It is important to be realistic - do not start something beyond your capabilities without proper guidance and research. Do not expect to make a 'fast buck' long term this never works. Whatever you are planning to undertake, aim to do it well, offering a good service at fair prices and word will spread. Verbal recommendations can make or break a business in Tenerife. This applies to both the business/residential and tourist population. Listen to your professional advisors they have many years experience.
Planning and Viabilities
Insufficient planning and non production of a viability report on a business venture is the downfall of many good businesses in Tenerife. TENERIFE ROYALE ESTATE AGENTS S.L. will assist you in the production of a viability report to ensure that your capital outlay and monthly outgoings are known. Remember you are looking for 'Profit' not 'Turnover'. This viability report will list all the predicted outgoings and what levels of 'sales' you will require to cover these costs and make the business 'viable'. Having produced this viability, you can then decide whether the level of sales required is manageable, realistic or even possible.
Once you are happy with the viability we can then proceed to a complete business plan. It is usual at this stage to engage the services of an accountant.
It is important to ensure that any business venture you undertake is fully legal and has the necessary licences and any special permits required in order to trade. Often having completed the viability and business plan, many clients are eager to begin trading and assume that everything is in order. There is no substitute for correct legal advice and you should engage the services of an Abogado (Spanish solicitor) who speaks fluent English.
Quite simply any agency that states they can undertake all the work for you and engaging a solicitor is not necessary should be avoided.
What price can you place on peace of mind?
TENERIFE ROYALE ESTATE AGENTS S.L. has links with solicitors in Tenerife who have acted for existing clients and are experts in Spanish commercial law. We are happy to recommend them to new clients.
TENERIFE ROYALE ESTATE AGENTS S.L. wants to make your business purchase as easy and trouble free as possible. You will benefit from our personal service and knowledge, however, we cannot avoid the fact that public contracts, deeds, forms, etc., have to be drawn up in Spanish and with the support of your Spanish solicitor and other professionals, together we will achieve maximum transparency and security for you.
Please be advised that regrettably, TENERIFE ROYALE ESTATE AGENTS S.L. WILL NOT undertake any business dealings with you, unless you agree to use the services of an independent Spanish solicitor.
Here are some of the points, which TENERIFE ROYALE ESTATE AGENTS S.L. and your appointed Spanish solicitor will investigate on your behalf:
- Certain businesses need several licences, i.e. supermarket - sale of food, alcohol, and tobacco.
- It will be necessary to obtain an opening licence(s) BEFORE TRADING commences.
- Do not assume that because a business is already trading it is legal.
- Expect other requirements, i.e. 'music licence' for certain bars or necessary legal consents.
- Lease contracts will need careful scrutiny to ensure you are fully aware of your obligations.
- Any debts or liabilities that the business has can and will be passed on to the new owner, it is therefore essential that all necessary checks be carried out prior to completing the purchase.
- It is important to make sure that the town hall will allow you to use the chosen premises for your activity.
- It will be necessary to register all personnel with the social security office.
- It is important to ensure all workers (proprietors and any employees) are fully legal with residencies and work contracts (if applicable).
As part of the service of TENERIFE ROYALE ESTATE AGENTS S.L. to our clients, all of the arrangements for obtaining these items (and many others not listed) will be arranged by us. We will liaise with your solicitor and other professionals to ensure that all the relevant inspections and paperwork are completed, thus ensuring that although our clients need to know the procedures they are not inconvenienced in any way. This means that you can focus on creating your new business and lifestyle safe in the knowledge that the necessary legal requirements and 'paperwork' is being processed for you.