Opening license in Spain, make sure everything is in order
Introduction: What is an opening licence and why is it necessary?
An opening licence is a permit required to open a business or commercial establishment. It is a legal requirement that must be fulfilled before starting any kind of business activity in a premises, warehouse, office,shop, etc . This licence guarantees that the premises business complies with all the rules and regulations established by the competent authorities.
Obtaining a business opening licence involves complying with a series of requirements and administrative formalities. These requirements may vary depending on the geographical location and the type of business in question. Some common examples include the submission of legal documents, technical inspections, compliance with health and safety at work regulations, among others.
Royal Decree Law 19/2012, of 25 May, on urgent measures to liberalise trade and certain services, introduced important changes to streamline and make more flexible the process of granting opening licences by local councils. At the time, these modifications were known as express licences.
For premises of less than 300 square meters, it is not necessary to obtain prior permission to open, but it is sufficient to submit a declaration of liability or prior notification to the local council “Declaracion responsable”. In this declaration, the entrepreneur undertakes to obtain the corresponding opening authorization.
You have the opportunity to expand by opening another commercial premises and you have found one whose price already includes an authorization to open. Before you buy, make sure everything is in order…
What type of license do you need?
The operating license is closely linked to the type of operation to be carried out in a given location and the possible nuisances or risks it may entail (noise, smoke, fire risk, use of polluting materials, etc.).
Sometimes, it is possible to start a business with a prior communication or a responsible declaration to the authorities (informing them of the start of the business while the documentation is gathered to accredit that it is being carried out in accordance with the regulations). However, it is always preferable to have a permit before you start.
What is the administrative file?
Don’t forget that the operating license is not just a title, but an administrative file – accompanied by a technical project – that determines the type of operation that can be carried out (and the way in which it must be carried out). For example, in the case of a restaurant, a permit is required to determine maximum capacity, layout, accessibility, kitchen features, etc.
So before you buy a license, check the administrative file to find out these details. There’s no need to obtain the authorization of the current license holder: the administrative file is a public document kept in the municipal archives, so anyone can consult it directly.
What is urbanistic compatibility?
Don’t forget that it’s essential to determine the compatibility between the business you want to run and the opening licence attached to the property.
In your case, you are acquiring premises that already have a licence. Consequently :
- Make sure that the business you develop there is the same as the one covered by the licence, and that you will carry it on under the same conditions.
- Don’t hesitate to consult a specialist technician if the operation you are planning to undertake differs in any way from that already carried out on the premises. Please note! Once you have acquired the licence, you are responsible for its proper use.
Types of opening license
Harmless operations are those that do not cause any significant nuisance, impact on the environment in terms of health or hygiene, damage to public or private property, or risk to property or people. Harmless operations include small businesses such as fashion boutiques or shops selling non-perishable foodstuffs, as well as small offices offering various services.
Qualified operations are those considered nuisance, unhealthy, noxious and/or dangerous, such as hotels, industrial operations, certain trades and services. These operations require corrective health, safety and environmental measures. Many of these activities can only be carried out on industrial sites.
Note also that there are sometimes sub-types of permit within a more generic permit. For example, in the catering sector, some towns have ‘bar’, ‘mixed bar-restaurant’ or ‘restaurant’ categories. Although they may seem identical, each authorises a different type of operation.
If you choose the wrong sub-category, not only will you lose money by buying an establishment that doesn’t meet your needs, but you could also be penalised for failing to comply with the regulations.
What do you need to check about the opening licence?
Check with the local council to see whether the premises are the subject of any current administrative proceedings that could result in penalties or injunctions to ban or seal the premises.
You should also check whether any sanction proceedings have been initiated on several occasions (as they indicate that something is not working properly). If there are any outstanding sanctions, you should take over the business (that way, although you can later claim a refund from the seller, you would have paid in the first place).
The worst thing would be to end up with a licence that does not correspond to the reality of the business you are going to run or that is not adapted to the regulations. But be careful!
To make sure that the opening licence covers your business, check the plans, permits and other documents in the administrative file before you buy.
All these formalities with the local authority can be complex, so it’s best to leave them to a business opening license professional.
