The start-up of an equestrian center in Spain, requires first defining the legal regime on which you want to operate. Since it is a commercial activity that can be developed through a physical person as an independent professional, a commercial company, a sports association or even through a foundation.
Before deciding which legal form to use, we must conveniently assess the economic objectives of the activity, the possible need to obtain financing, the number of partners we have, as well as the most convenient taxes.
The benefits of the self-employed are subject to the IRPF tax in the corresponding scale, while the mercantile companies are taxed by the Corporation Tax at a fixed rate. The advantage that their partners will not respond with their equity (except cases of fraudulent management), of the debts contracted by the company.
The clubs or sports associations, like the foundations, enjoy greater tax advantages, since they are exempt from Corporate Tax because they are non-profit entities. These entities can hire personnel and perform all kinds of economic activity with the particularity that they cannot distribute benefits among their promoters. In this case of obtaining benefits they must always be reinvested in the fulfillment of the entity’s purposes.
Firstly, for the constitution of a sports association or “Equestrian Club” to be formed, we must write a founding act by at least three partners, in which a provisional Board of Directors (President, Secretary and Treasurer) will be appointed to carry out the execution all the necessary legal procedures.
Secondly, it will be necessary to elaborate the Bylaw, whose content must be in accordance with the sports legislation of the Autonomous Community where the Club has its address, and must be registered in the Register of Sports Entities authorized for this purpose.
Thirdly, once recorded in the corresponding Registry of Sport Entities, you must request the issuance of a federative license in the corresponding equestrian federation. After which, we will have completed all the necessary procedures for the constitution of an “Equestrian Club”.
Finally, we will get a tax identification number from the tax administration office, and then request the town hall administration for the activity license and opening license.