Economy Profile 2015 Doing Business 2015
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Doing Business 2015 Spain
Economy Profile 2015
Spain
Doing Business 2015 Spain 2
© 2014 The International Bank for Reconstruction and Development /
The World Bank
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ISBN (paper): 978-1-4648-0351-2
ISBN (electronic): 978-1-4648-0352-9
DOI: 10.1596/978-1-4648-0351-2
ISSN: 1729-2638
Cover design: Corporate Visions, Inc.Doing Business 2015 Spain 3 CONTENTS Introduction .................................................................................................................................. 4 The business environment .......................................................................................................... 6 Starting a business ..................................................................................................................... 16 Dealing with construction permits ........................................................................................... 23 Getting electricity ....................................................................................................................... 30 Registering property .................................................................................................................. 36 Getting credit .............................................................................................................................. 43 Protecting minority investors ................................................................................................... 49 Paying taxes ................................................................................................................................ 59 Trading across borders .............................................................................................................. 64 Enforcing contracts .................................................................................................................... 69 Resolving insolvency .................................................................................................................. 76 Labor market regulation ........................................................................................................... 81 Distance to frontier and ease of doing business ranking ...................................................... 88 Resources on the Doing Business website .............................................................................. 91
Doing Business 2015 Spain 4
INTRODUCTION
Doing Business sheds light on how easy or difficult it is 1, 2014 (except for the paying taxes indicators, which
for a local entrepreneur to open and run a small to cover the period January–December 2013).
medium-size business when complying with relevant
The Doing Business methodology has limitations. Other
regulations. It measures and tracks changes in
areas important to business—such as an economy’s
regulations affecting 11 areas in the life cycle of a
proximity to large markets, the quality of its
business: starting a business, dealing with construction
infrastructure services (other than those related to
permits, getting electricity, registering property, getting
trading across borders and getting electricity), the
credit, protecting minority investors, paying taxes,
security of property from theft and looting, the
trading across borders, enforcing contracts, resolving
transparency of government procurement,
insolvency and labor market regulation.
macroeconomic conditions or the underlying strength of
In a series of annual reports Doing Business presents institutions—are not directly studied by Doing Business.
quantitative indicators on business regulations and the The indicators refer to a specific type of business,
protection of property rights that can be compared generally a local limited liability company operating in
across 189 economies, from Afghanistan to Zimbabwe, the largest business city. Because standard assumptions
over time. The data set covers 47 economies in Sub- are used in the data collection, comparisons and
Saharan Africa, 32 in Latin America and the Caribbean, 25 benchmarks are valid across economies. The data not
in East Asia and the Pacific, 26 in Eastern Europe and only highlight the extent of obstacles to doing business;
Central Asia, 20 in the Middle East and North Africa and they also help identify the source of those obstacles,
8 in South Asia, as well as 31 OECD high-income supporting policy makers in designing regulatory reform.
economies. The indicators are used to analyze economic
More information is available in the full report. Doing
outcomes and identify what reforms have worked, where
Business 2015 presents the indicators, analyzes their
and why.
relationship with economic outcomes and presents
This economy profile presents the Doing Business business regulatory reforms. The data, along with
indicators for Spain. To allow useful comparison, it also information on ordering Doing Business 2015, are
provides data for other selected economies (comparator available on the Doing Business website at
economies) for each indicator. The data in this report are http://www.doingbusiness.org.
current as of JuneDoing Business 2015 Spain 5
CHANGES IN DOING BUSINESS 2015
As part of a 2-year update in methodology, Doing Finally, the name of the employing workers indicator set
Business 2015 incorporates 7 important changes. First, has been changed to labor market regulation, and the
the ease of doing business ranking as well as all topic- scope of this indicator set has also been changed. The
level rankings are now computed on the basis of indicators now focus on labor market regulation
distance to frontier scores (see the chapter on the applying to the retail sector rather than the
distance to frontier and ease of doing business ranking). manufacturing sector, and their coverage has been
Second, for the 11 economies with a population of more expanded to include regulations on labor disputes and
than 100 million, data for a second city have been added on benefits provided to workers. The labor market
to the data set and the ranking calculation. These regulation indicators continue to be excluded from the
economies are Bangladesh, Brazil, China, India, aggregate distance to frontier score and ranking on the
Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian ease of doing business.
Federation and the United States. Third, for getting
Beyond these changes there are 3 other updates in
credit, the methodology has been revised for both the
methodology. For paying taxes, the financial statement
strength of legal rights index and the depth of credit
variables have been updated to be proportional to 2012
information index. The number of points has been
income per capita; previously they were proportional to
increased in both indices, from 10 to 12 for the strength
2005 income per capita. For enforcing contracts, the
of legal rights index and from 6 to 8 for the depth of
value of the claim is now set at twice the income per
credit information index. In addition, only credit bureaus
capita or $5,000, whichever is greater. For dealing with
and registries that cover at least 5% of the adult
construction permits, the cost of construction is now set
population can receive a score on the depth of credit
at 50 times income per capita (before, the cost was
information index.
assessed by the Doing Business respondents). In addition,
Fourth, the name of the protecting investors indicator set this indicator set no longer includes the procedures for
has been changed to protecting minority investors to obtaining a landline telephone connection.
better reflect its scope—and the scope of the indicator
For more details on the changes, see the “What is
set has been expanded to include shareholders’ rights in
changing in Doing Business?” chapter starting on page
corporate governance beyond related-party transactions.
24 of the Doing Business 2015 report. For more details
Fifth, the resolving insolvency indicator set has been
on the data and methodology, please see the “Data
expanded to include an index measuring the strength of
Notes” chapter starting on page 114 of the Doing
the legal framework for insolvency. Sixth, the calculation
Business 2015 report. For more details on the distance to
of the distance to frontier score for paying taxes has
frontier metric, please see the “Distance to frontier and
been changed. The total tax rate component now enters
ease of doing business ranking” chapter in this profile.
the score in a nonlinear fashion, in an approach different
from that used for all other indicators (see the chapter
on the distance to frontier and ease of doing business
ranking).Doing Business 2015 Spain 6
THE BUSINESS ENVIRONMENT
For policy makers trying to improve their economy’s
regulatory environment for business, a good place to start ECONOMY OVERVIEW
is to find out how it compares with the regulatory
environment in other economies. Doing Business provides
an aggregate ranking on the ease of doing business
Region: OECD high income
based on indicator sets that measure and benchmark
regulations applying to domestic small to medium-size Income category: High income
businesses through their life cycle. Economies are ranked
from 1 to 189 by the ease of doing business ranking. This Population: 46,647,421
year's report presents results for 2 aggregate measures:
the distance to frontier score and the ease of doing GNI per capita (US$): 29,180
business ranking. The ranking of economies is determined
by sorting the aggregate distance to frontier (DTF) scores. DB2015 rank: 33
The distance to frontier score benchmarks economies
with respect to regulatory practice, showing the absolute DB2014 rank: 32*
distance to the best performance in each Doing Business
Change in rank: -1
indicator. An economy’s distance to frontier score is
indicated on a scale from 0 to 100, where 0 represents the
DB 2015 DTF: 73.17
worst performance and 100 the frontier. (See the chapter
on the distance to frontier and ease of doing business). DB 2014 DTF: 72.24
The 10 topics included in the ranking in Doing Business
2015: starting a business, dealing with construction Change in DTF: 0.93
permits, getting electricity, registering property, getting
credit, protecting minority investors, paying taxes, trading * DB2014 ranking shown is not last year’s published
across borders, enforcing contracts and resolving ranking but a comparable ranking for DB2014 that
insolvency. The labor market regulation indicators captures the effects of such factors as data
(formerly employing workers) are not included in this corrections and the changes in methodology. See
year’s aggregate ease of doing business ranking, but the the data notes starting on page 114 of the Doing
data are presented in this year’s economy profile. Business 2015 report for sources and definitions.
The aggregate ranking on the ease of doing business
benchmarks each economy’s performance on the
indicators against that of all other economies in the Doing
Business sample (figure 1.1). While this ranking tells much
about the business environment in an economy, it does
not tell the whole story. The ranking on the ease of doing
business, and the underlying indicators, do not measure all
aspects of the business environment that matter to firms
and investors or that affect the competitiveness of the
economy. Still, a high ranking does mean that the
government has created a regulatory environment
conducive to operating a business.Doing Business 2015 Spain
THE BUSINESS ENVIRONMENT
Figure 1.1 Where economies stand in the global ranking on the ease of doing business
Source: Doing Business database.Doing Business 2015 Spain THE BUSINESS ENVIRONMENT For policy makers, knowing where their economy regional average (figure 1.2). The economy’s rankings stands in the aggregate ranking on the ease of doing (figure 1.3) and distance to frontier scores (figure 1.4) business is useful. Also useful is to know how it ranks on the topics included in the ease of doing business relative to comparator economies and relative to the ranking provide another perspective. Figure 1.2 How Spain and comparator economies rank on the ease of doing business Note: The rankings are benchmarked to June 2014 and based on the average of each economy’s distance to frontier (DTF) scores for the 10 topics included in this year’s aggregate ranking. The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 the frontier. For the economies for which the data cover 2 cities, scores are a population-weighted average for the 2 cities. Source: Doing Business database.
Doing Business 2015 Spain 9 THE BUSINESS ENVIRONMENT Figure 1.3 Rankings on Doing Business topics - Spain (Scale: Rank 189 center, Rank 1 outer edge) Figure 1.4 Distance to frontier scores on Doing Business topics - Spain (Scale: Score 0 center, Score 100 outer edge) Note: The rankings are benchmarked to June 2014 and based on the average of each economy’s distance to frontier (DTF) scores for the 10 topics included in this year’s aggregate ranking. The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 the frontier. For the economies for which the data cover 2 cities, scores are a population-weighted average for the 2 cities. Source: Doing Business database.
Doing Business 2015 Spain 10
THE BUSINESS ENVIRONMENT
Just as the overall ranking on the ease of doing business tells Doing Business introduced the distance to frontier score. This
only part of the story, so do changes in that ranking. Yearly measure shows how far on average an economy is from the
movements in rankings can provide some indication of best performance achieved by any economy on each Doing
changes in an economy’s regulatory environment for firms, Business indicator.
but they are always relative.
Comparing the measure for an economy at 2 points in time
Moreover, year-to-year changes in the overall rankings do allows users to assess how much the economy’s regulatory
not reflect how the business regulatory environment in an environment as measured by Doing Business has changed
economy has changed over time—or how it has changed in over time—how far it has moved toward (or away from) the
different areas. To aid in assessing such changes, most efficient practices and strongest regulations in areas
covered by Doing Business (figure 1.5).
Figure 1.5 How far has Spain come in the areas measured by Doing Business?
Note: The distance to frontier score shows how far on average an economy is from the best performance achieved by any economy on
each Doing Business indicator since 2010, except for getting credit, paying taxes, protecting minority investors and resolving insolvency
which had methodology changes in 2014 and thus are only comparable to 2013. The measure is normalized to range between 0 and 100,
with 100 representing the best performance (the frontier). See the data notes starting on page 114 of the Doing Business 2015 report for
more details on the distance to frontier score.
Source: Doing Business database.Doing Business 2015 Spain 11
THE BUSINESS ENVIRONMENT
The absolute values of the indicators tell another part of regulation—such as a regulatory process that can be
the story (table 1.1). The indicators, on their own or in completed with a small number of procedures in a few
comparison with the indicators of a good practice days and at a low cost. Comparison of the economy’s
economy or those of comparator economies in the indicators today with those in the previous year may
region, may reveal bottlenecks reflected in large numbers show where substantial bottlenecks persist—and where
of procedures, long delays or high costs. Or they may they are diminishing.
reveal unexpected strengths in an area of business
Table 1.1 Summary of Doing Business indicators for Spain
United Kingdom DB2015
Best performer globally
Switzerland DB2015
Germany DB2015
Portugal DB2015
Indicator
France DB2015
Spain DB2015
Spain DB2014
Italy DB2015
DB2015
Starting a Business
74 115 28 114 46 10 69 45 New Zealand (1)
(rank)
Starting a Business (DTF
88.08 79.68 93.00 81.38 91.22 96.27 88.42 91.23 New Zealand (99.96)
Score)
Procedures (number) 6.0 10.0 5.0 9.0 5.0 3.0 6.0 6.0 New Zealand (1.0)*
Time (days) 13.0 23.0 4.5 14.5 5.0 2.5 10.0 6.0 New Zealand (0.5)
Cost (% of income per
4.6 4.7 0.9 8.8 14.1 2.3 2.0 0.3 Slovenia (0.0)
capita)
Paid-in min. capital (%
13.8 13.4 0.0 35.8 0.0 0.0 25.4 0.0 112 Economies (0.0)*
of income per capita)
Dealing with
Hong Kong SAR,
Construction Permits 105 104 86 8 116 58 45 17
China (1)
(rank)
Dealing with
Hong Kong SAR,
Construction Permits 69.18 69.24 73.14 87.42 67.35 77.31 78.50 85.06
China (95.53)
(DTF Score)Doing Business 2015 Spain 12
United Kingdom DB2015
Best performer globally
Switzerland DB2015
Germany DB2015
Portugal DB2015
Indicator
France DB2015
Spain DB2015
Spain DB2014
Italy DB2015
DB2015
Hong Kong SAR,
Procedures (number) 7.0 7.0 8.0 8.0 10.0 14.0 11.0 9.0
China (5.0)
Time (days) 229.0 229.0 183.0 96.0 233.0 113.0 154.0 105.0 Singapore (26.0)
Cost (% of warehouse
5.2 5.2 4.7 1.1 3.7 1.4 0.7 1.2 Qatar (0.0)*
value)
Getting Electricity
74 68 60 3 102 47 5 70 Korea, Rep. (1)
(rank)
Getting Electricity (DTF
78.18 78.21 79.87 98.37 72.65 82.00 96.71 78.42 Korea, Rep. (99.83)
Score)
Procedures (number) 5.0 5.0 5.0 3.0 5.0 5.0 3.0 4.0 12 Economies (3.0)*
Time (days) 85.0 85.0 79.0 28.0 124.0 64.0 39.0 126.0 Korea, Rep. (18.0)*
Cost (% of income per
242.0 234.4 42.9 44.4 212.6 52.9 59.2 90.1 Japan (0.0)
capita)
Registering Property
66 71 126 89 41 25 16 68 Georgia (1)
(rank)
Registering Property
73.57 71.28 59.36 67.78 79.44 83.67 88.71 72.55 Georgia (99.88)
(DTF Score)
Procedures (number) 5.0 5.0 8.0 5.0 4.0 1.0 4.0 6.0 4 Economies (1.0)*
Time (days) 12.0 12.5 49.0 40.0 16.0 1.0 16.0 21.5 3 Economies (1.0)*
Cost (% of property
6.1 7.1 6.1 6.7 4.4 7.3 0.3 4.6 4 Economies (0.0)*
value)
Getting Credit (rank) 52 45 71 23 89 89 52 17 New Zealand (1)
Getting Credit (DTF
60.00 60.00 50.00 70.00 45.00 45.00 60.00 75.00 New Zealand (100)
Score)
Strength of legal rights
5 5 4 6 2 2 6 7 3 Economies (12)*
index (0-12)Doing Business 2015 Spain 13
United Kingdom DB2015
Best performer globally
Switzerland DB2015
Germany DB2015
Portugal DB2015
Indicator
France DB2015
Spain DB2015
Spain DB2014
Italy DB2015
DB2015
Depth of credit
7 7 6 8 7 7 6 8 23 Economies (8)*
information index (0-8)
Credit registry coverage
50.0 51.9 44.5 1.3 24.6 100.0 0.0 0.0 Portugal (100.0)
(% of adults)
Credit bureau coverage
15.3 15.6 0.0 100.0 100.0 23.4 26.3 100.0 23 Economies (100.0)*
(% of adults)
Protecting Minority
30 30 17 51 21 51 78 4 New Zealand (1)
Investors (rank)
Protecting Minority
64.17 64.17 67.50 59.17 66.67 59.17 55.00 78.33 New Zealand (81.67)
Investors (DTF Score)
Extent of conflict of
interest regulation 5.3 5.3 5.7 5.0 6.0 6.0 3.3 8.3 Singapore (9.3)*
index (0-10)
Extent of shareholder
governance index (0- 7.5 7.5 7.8 6.8 7.3 5.8 7.7 7.3 France (7.8)*
10)
Strength of minority
investor protection 6.4 6.4 6.8 5.9 6.7 5.9 5.5 7.8 New Zealand (8.2)
index (0-10)
United Arab Emirates
Paying Taxes (rank) 76 70 95 68 141 64 18 16
(1)*
Paying Taxes (DTF United Arab Emirates
75.25 76.00 72.12 77.02 62.13 77.84 89.05 90.52
Score) (99.44)*
Payments (number per Hong Kong SAR,
8.0 8.0 8.0 9.0 15.0 8.0 19.0 8.0
year) China (3.0)*
Time (hours per year) 167.0 167.0 137.0 218.0 269.0 275.0 63.0 110.0 Luxembourg (55.0)
Trading Across Borders
30 29 10 18 37 29 22 15 Singapore (1)
(rank)
Trading Across Borders 84.68 84.77 90.18 87.67 83.44 85.20 86.10 88.32 Singapore (96.47)Doing Business 2015 Spain 14
United Kingdom DB2015
Best performer globally
Switzerland DB2015
Germany DB2015
Portugal DB2015
Indicator
France DB2015
Spain DB2015
Spain DB2014
Italy DB2015
DB2015
(DTF Score)
Documents to export
4 4 2 4 3 4 3 4 Ireland (2)*
(number)
Time to export (days) 10.0 10.0 10.0 9.0 19.0 15.0 8.0 8.0 5 Economies (6.0)*
Cost to export (US$ per
1,310.0 1,310.0 1,335.0 1,015.0 1,195.0 780.0 1,660.0 1,005.0 Timor-Leste (410.0)
container)
Cost to export (deflated
1,310.0 1,318.5 1,335.0 1,015.0 1,195.0 780.0 1,660.0 1,005.0
US$ per container)
Documents to import
4 4 2 4 3 4 4 4 Ireland (2)*
(number)
Time to import (days) 9.0 9.0 11.0 7.0 18.0 13.0 8.0 6.0 Singapore (4.0)
Cost to import (US$ per
1,400.0 1,350.0 1,445.0 1,050.0 1,145.0 925.0 1,440.0 1,050.0 Singapore (440.0)
container)
Cost to import (deflated
1,400.0 1,358.7 1,445.0 1,050.0 1,145.0 925.0 1,440.0 1,050.0
US$ per container)
Enforcing Contracts
69 70 10 13 147 27 22 36 Singapore (1)
(rank)
Enforcing Contracts
62.65 62.65 77.67 76.74 45.61 69.65 72.20 68.08 Singapore (89.54)
(DTF Score)
Time (days) 510.0 510.0 395.0 394.0 1,185.0 547.0 390.0 437.0 Singapore (150.0)
Cost (% of claim) 18.5 18.5 17.4 14.4 23.1 13.8 24.0 39.9 Iceland (9.0)
Procedures (number) 40.0 40.0 29.0 31.0 37.0 34.0 32.0 29.0 Singapore (21.0)*
Resolving Insolvency
23 22 22 3 29 10 41 13 Finland (1)
(rank)
Resolving Insolvency
75.89 76.42 75.94 91.78 71.29 84.19 63.10 82.04 Finland (93.85)
(DTF Score)Doing Business 2015 Spain 15
United Kingdom DB2015
Best performer globally
Switzerland DB2015
Germany DB2015
Portugal DB2015
Indicator
France DB2015
Spain DB2015
Spain DB2014
Italy DB2015
DB2015
Time (years) 1.5 1.5 1.9 1.2 1.8 2.0 3.0 1.0 Ireland (0.4)
Cost (% of estate) 11.0 11.0 9.0 8.0 22.0 9.0 3.5 6.0 Norway (1.0)
Outcome (0 as
piecemeal sale and 1 as 1 1 1 1 1 1 0 1
going concern)
Recovery rate (cents on
71.3 72.3 77.2 83.4 62.8 72.2 47.6 88.6 Japan (92.9)
the dollar)
Strength of insolvency
12.0 12.0 11.0 15.0 12.0 14.5 12.0 11.0 5 Economies (15.0)*
framework index (0-16)
Note: DB2014 rankings shown are not last year’s published rankings but comparable rankings for DB2014 that capture the effects of such
factors as data corrections and changes to the methodology. Trading across borders deflated and non-deflated values are identical in
DB2015 because it is defined as the base year for the deflator. The best performer on time for paying taxes is defined as the lowest time
recorded among all economies in the DB2015 sample that levy the 3 major taxes: profit tax, labor taxes and mandatory contributions, and
VAT or sales tax. If an economy has no laws or regulations covering a specific area—for example, insolvency—it receives a “no practice”
mark. Similarly, an economy receives a “no practice” or “not possible” mark if regulation exists but is never used in practice or if a
competing regulation prohibits such practice. Either way, a “no practice” mark puts the economy at the bottom of the ranking on the
relevant indicator.
* Two or more economies share the top ranking on this indicator. A number shown in place of an economy’s name indicates the number
of economies that share the top ranking on the indicator. For a list of these economies, see the Doing Business website
(http://www.doingbusiness.org).
Source: Doing Business database.Doing Business 2015 Spain 16
STARTING A BUSINESS
Formal registration of companies has many WHAT THE STARTING A BUSINESS
immediate benefits for the companies and for
business owners and employees. Legal entities can INDICATORS MEASURE
outlive their founders. Resources are pooled as
several shareholders join forces to start a company. Procedures to legally start and operate a
Formally registered companies have access to company (number)
services and institutions from courts to banks as well
Preregistration (for example, name
as to new markets. And their employees can benefit
verification or reservation, notarization)
from protections provided by the law. An additional
benefit comes with limited liability companies. These Registration in the economy’s largest
limit the financial liability of company owners to their business city1
investments, so personal assets of the owners are not
Postregistration (for example, social security
put at risk. Where governments make registration
registration, company seal)
easy, more entrepreneurs start businesses in the
formal sector, creating more good jobs and Time required to complete each procedure
generating more revenue for the government. (calendar days)
What do the indicators cover? Does not include time spent gathering
information
Doing Business measures the ease of starting a
business in an economy by recording all procedures Each procedure starts on a separate day (2
officially required or commonly done in practice by procedures cannot start on the same day).
an entrepreneur to start up and formally operate an Procedures that can be fully completed
industrial or commercial business—as well as the online are recorded as ½ day.
time and cost required to complete these procedures. Procedure completed once final document is
It also records the paid-in minimum capital that received
companies must deposit before registration (or
within 3 months). The ranking of economies on the No prior contact with officials
ease of starting a business is determined by sorting Cost required to complete each procedure
their distance to frontier scores for starting a (% of income per capita)
business. These scores are the simple average of the
distance to frontier scores for each of the component Official costs only, no bribes
indicators. No professional fees unless services required
To make the data comparable across economies, by law
Doing Business uses several assumptions about the Paid-in minimum capital (% of income
business and the procedures. It assumes that all per capita)
information is readily available to the entrepreneur
and that there has been no prior contact with Deposited in a bank or with a notary before
officials. It also assumes that the entrepreneur will registration (or within 3 months)
pay no bribes. And it assumes that the business:
Is a limited liability company, located in the Has a start-up capital of 10 times income per
largest business city and is 100% domestically capita.
owned1.
Has a turnover of at least 100 times income per
Has between 10 and 50 employees. capita.
Conducts general commercial or industrial Does not qualify for any special benefits.
activities.
Does not own real estate.
1
For the 11 economies with a population of more than 100 million, data for a second city have been added.Doing Business 2015 Spain 17 STARTING A BUSINESS Where does the economy stand today? What does it take to start a business in Spain? According business city of an economy, except for 11 economies for to data collected by Doing Business, starting a business which the data are a population-weighted average of the there requires 6.0 procedures, takes 13.0 days, costs 4.6% 2 largest business cities. See the chapter on distance to of income per capita and requires paid-in minimum frontier and ease of doing business ranking at the end of capital of 13.8% of income per capita (figure 2.1). Most this profile for more details. indicator sets refer to a case scenario in the largest Figure 2.1 What it takes to start a business in Spain Paid-in minimum capital (% of income per capita): 13.8 Note: Time shown in the figure above may not reflect simultaneity of procedures. Online procedures account for 0.5 days in the total time calculation. For more information on the methodology of the starting a business indicators, see the Doing Business website (http://www.doingbusiness.org). For details on the procedures reflected here, see the summary at the end of this chapter. Source: Doing Business database.
Doing Business 2015 Spain 18 STARTING A BUSINESS Globally, Spain stands at 74 in the ranking of 189 average ranking provide other useful information for economies on the ease of starting a business (figure 2.2). assessing how easy it is for an entrepreneur in Spain to The rankings for comparator economies and the regional start a business. Figure 2.2 How Spain and comparator economies rank on the ease of starting a business Source: Doing Business database.
Doing Business 2015 Spain 19
STARTING A BUSINESS
Economies around the world have taken steps making it they often are part of a larger regulatory reform
easier to start a business—streamlining procedures by program. Among the benefits have been greater firm
setting up a one-stop shop, making procedures simpler satisfaction and savings and more registered businesses,
or faster by introducing technology and reducing or financial resources and job opportunities.
eliminating minimum capital requirements. Many have
What business registration reforms has Doing Business
undertaken business registration reforms in stages—and
recorded in Spain (table 2.1)?
Table 2.1 How has Spain made starting a business easier—or not?
By Doing Business report year from DB2010 to DB2015
DB year Reform
Spain eased the process of starting a business by reducing the
DB2012 cost to start a business and decreasing the minimum capital
requirement.
Spain made starting a business easier by eliminating the
requirement to obtain a municipal license before starting
DB2014
operations and by improving the efficiency of the commercial
registry.
Spain made starting a business easier by introducing an
DB2015 electronic system linking several public agencies and thereby
simplifying business registration.
Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports
for these years, available at http://www.doingbusiness.org.
Source: Doing Business database.Doing Business 2015 Spain 20
STARTING A BUSINESS
What are the details?
Underlying the indicators shown in this chapter for
STANDARDIZED COMPANY
Spain is a set of specific procedures—the
bureaucratic and legal steps that an entrepreneur
must complete to incorporate and register a new Legal form: Sociedad de responsabilidad
firm. These are identified by Doing Business through limitada (SRL) -Limited Liability Company
collaboration with relevant local professionals and
the study of laws, regulations and publicly available Paid in minimum capital requirement: EUR 3,000
information on business entry in that economy. City: Madrid
Following is a detailed summary of those procedures,
along with the associated time and cost. These Start-up Capital: 10 times GNI per capita
procedures are those that apply to a company
matching the standard assumptions (the
“standardized company”) used by Doing Business in
collecting the data (see the section in this chapter on
what the indicators measure).
Table 2.2 Summary of time, cost and procedures for starting a business in Spain
Time to
No. Procedure Cost to complete
complete
Obtain a certification of uniqueness of proposed company name
(certificación negativa de la denominación social) from the
Mercantile Register
Once the Registry issues the certification, the requested corporate
name will be reserved for a maximum of 6 months from the
certification’s date of issuance.
1 Each certification of uniqueness of the corporate name is valid for 3 2 days on average EUR 16.25
months from its date of issuance. Furthermore, once the certificate's
validity has expired (3 months), the certificate can only be renewed
once, after which a new certificate must be requested.
Agency: Central Commercial Registry
Open a bank account for the company; deposit capital in the bank
and obtain a deposit certificate
The contributions can also be directly given to the notary public before
whom the deed of incorporation is going to be granted, at the time of
2 the granting, so that the notary can deposit them in the Company's 1 day no charge
bank account.
Agency: BankDoing Business 2015 Spain 21
Time to
No. Procedure Cost to complete
complete
File the single electronic form (DUE) and make an appointment
with a notary
Entrepreneurs can visit a Help desk for Entrepreneurs (PAE, Punto de
Atención Empresarial) where they will fill in the single electronic form
called DUE (Documento Unico Electronico). The PAE will then send the
DUE through the electronic platform CIRCE to each administrative
department involved in the process of starting a business, such as the 1 day no charge
3
notary´s office, the commercial registry, the tax agency and the social
security agency. The PAE will also help the entrepreneur to set up an
appointment with a notary that will grant the public deed of
incorporation of the company.
Agency: Punto de Atencion Empresarial (PAE)
Obtain the registered public deed of incorporation of the company
and the fiscal identification number (CIF) before a public notary
The DUE is sent electronically through CIRCE to the notary for the
incorporation of the deed. Once the notary has granted the public
deed, he sends an electronic communication to the tax administration
agency asking for the provisional Tax Number (CIF) for the new
company. The notary also sends the public deed for registration with
the commercial registry. Once the company is registered with the
commercial registry, the registry communicates the registration of the
deed to the tax administration and asks for the definitive tax number
for the company again by electronic means through CIRCE. Finally, see procedure
4 CIRCE notifies the definitive tax number to the notary and the notary 7 days
details
communicates it to the founders of the company. Registering the deed
with the commercial registry and obtaining the provisional CIF from the
tax authority takes 3 days approximately but it takes a few more days to
obtain the final tax number.
Notary costs approximately €500 (depending on the amount of the
share capital and complexity of the operation) and registration costs
EUR 155 to EUR 300 (depending on the amount of the share capital)
Agency: Public Notary
Submit a notification of start of operations (declaración
responsable) to a private agency authorized by the municipality
(ECLU)
EUR 350. The cost
varies depending
On December 26, 2012, Spain adopted law 12/2012. This law removes on the location and
5 1 day
the requirement for certain commercial activities to obtain a municipal the size of the
license to initiate the execution of works and start operations. A business premises.
company can start operations after submitting a simple notification
(declaracion responsable sin certificado de conformidad) to the private
agencies authorized by the Municipality (ECLU).Doing Business 2015 Spain 22
Time to
No. Procedure Cost to complete
complete
Agency: Town Council
* Notify the Delegación Provincial de la Consejería de Trabajo e
Industria
The corresponding autonomous community must be notified within the
first 30 days of the start of activities and the opening of the workplace. 1 day
Every autonomous community has its own form. Some require that (simultaneous with
6 work injury and safety documentation (corresponding to the specific previous no charge
business or workplace in question) be filed along with the forms. Other procedure)
forms and documents might be needed depending on the workplace
activities.
Agency: Dirección Gral Trabajo - Comunidad de Madrid
* Takes place simultaneously with another procedure.
Note: Online procedures account for 0.5 days in the total time calculation.
Source: Doing Business database.Doing Business 2015 Spain 23
DEALING WITH CONSTRUCTION PERMITS
Regulation of construction is critical to protect the WHAT THE DEALING WITH CONSTRUCTION
public. But it needs to be efficient, to avoid excessive
PERMITS INDICATORS MEASURE
constraints on a sector that plays an important part in
every economy. Where complying with building
regulations is excessively costly in time and money, Procedures to legally build a warehouse
many builders opt out. They may pay bribes to pass (number)
inspections or simply build illegally, leading to Submitting all relevant documents and
hazardous construction that puts public safety at risk. obtaining all necessary clearances, licenses,
Where compliance is simple, straightforward and permits and certificates
inexpensive, everyone is better off. Submitting all required notifications and
What do the indicators cover? receiving all necessary inspections
Doing Business records the procedures, time and cost Obtaining utility connections for water and
for a business in the construction industry to obtain sewerage
all the necessary approvals to build a warehouse in Registering the warehouse after its
the economy’s largest business city, connect it to completion (if required for use as collateral or
basic utilities and register the warehouse so that it for transfer of the warehouse)
can be used as collateral or transferred to another Time required to complete each procedure
entity. (calendar days)
The ranking of economies on the ease of dealing with Does not include time spent gathering
construction permits is determined by sorting their information
distance to frontier scores for dealing with
Each procedure starts on a separate day.
construction permits. These scores are the simple
Procedures that can be fully completed online
average of the distance to frontier scores for each of
are recorded as ½ day.
the component indicators.
Procedure considered completed once final
To make the data comparable across economies, document is received
Doing Business uses several assumptions about the
business and the warehouse, including the utility No prior contact with officials
connections. Cost required to complete each procedure (%
The business: of warehouse value)
Official costs only, no bribes
Is a limited liability company operating in
the construction business and located in Will have complete architectural and
the largest business city. For the 11 technical plans prepared by a licensed
economies with a population of more than architect or engineer.
100 million, data for a second city have
Will be connected to water and sewerage
been added. Is domestically owned and
(sewage system, septic tank or their
operated.
equivalent). The connection to each utility
Has 60 builders and other employees. network will be 150 meters (492 feet) long.
The warehouse: Will be used for general storage, such as of
books or stationery (not for goods requiring
Is valued at 50 times income per capita.
special conditions).
Is a new construction (there was no
Will take 30 weeks to construct (excluding all
previous construction on the land).
delays due to administrative and regulatory
requirements).Doing Business 2015 Spain 24 DEALING WITH CONSTRUCTION PERMITS Where does the economy stand today? What does it take to comply with the formalities to build economy, except for 11 economies for which the data a warehouse in Spain? According to data collected by are a population-weighted average of the 2 largest Doing Business, dealing with construction permits there business cities. See the chapter on distance to frontier requires 7.0 procedures, takes 229.0 days and costs 5.2% and ease of doing business ranking at the end of this of the warehouse value (figure 3.1). Most indicator sets profile for more details. refer to a case scenario in the largest business city of an Figure 3.1 What it takes to comply with formalities to build a warehouse in Spain Note: Time shown in the figure above may not reflect simultaneity of procedures. Online procedures account for 0.5 days in the total time calculation. For more information on the methodology of the dealing with construction permits indicators, see the Doing Business website (http://www.doingbusiness.org). For details on the procedures reflected here, see the summary at the end of this chapter. Source: Doing Business database.
Doing Business 2015 Spain 25 DEALING WITH CONSTRUCTION PERMITS Globally, Spain stands at 105 in the ranking of 189 economies and the regional average ranking provide economies on the ease of dealing with construction other useful information for assessing how easy it is for permits (figure 3.2). The rankings for comparator an entrepreneur in Spain to legally build a warehouse. Figure 3.2 How Spain and comparator economies rank on the ease of dealing with construction permits Source: Doing Business database.
Doing Business 2015 Spain 26
DEALING WITH CONSTRUCTION PERMITS
What are the details?
The indicators reported here for Spain are based on
BUILDING A WAREHOUSE
a set of specific procedures—the steps that a
company must complete to legally build a
warehouse—identified by Doing Business through Estimated cost of
information collected from experts in construction EUR 1,087,883
construction :
licensing, including architects, civil engineers,
construction lawyers, construction firms, utility
City : Madrid
service providers and public officials who deal with
building regulations. These procedures are those The procedures, along with the associated time and cost,
that apply to a company and structure matching the are summarized below.
standard assumptions used by Doing Business in
collecting the data (see the section in this chapter on
what the indicators cover).
Table 3.2 Summary of time, cost and procedures for dealing with construction permits in Spain
Time to
No. Procedure Cost to complete
complete
Request and obtain a certificate of compliance (certificado de
conformidad)
Prior to applying for the construction permit, BuildCo must obtain a
compliance certificate. This certificate is the provisional license which
can be obtained from two agencies - Municipality or Entidades
Colaboradoras Urbanisticas - ECU according to the new Local
Ordinance of the City Council of Madrid ("Ordenanza para la apertura
de actividades economicas en la ciudad de Madrid").
The ECU has 2 months to examine the documentation and grant the 60 days EUR 6,277
1
compliance certificate. Once the compliance certificate has been
granted, it must be attached to the building permit application.
The final construction permit is issued by the Municipality. Once the
licencia urbanistica de obras y actividad is issued by the Municipality of
Madrid, BuildCo can proceed with the construction.
Agency: Entidades Colaboradoras Urbanisticas - ECU
Request and obtain a building license
The documents required to obtain the license are the following:
• A standardized application form and sheet containing the
characteristics of the construction properly completed
• Proof of payment of tax
• Declaration by one or more technical authors (architect and project 90 days EUR 43,515
2
design specialists) that the project conforms to the appropriate town
planning regulations, and certificate of the structural feasibility, if
necessary
• Declaration of the promoter that a signboard has been posted at the
site to inform the public that a building license has been applied for
and to provide information about the proposed operations and
activitiesDoing Business 2015 Spain 27
Time to
No. Procedure Cost to complete
complete
• Three copies of the technical project designs signed by qualified
technician(s) and countersigned by the appropriate official institute (or
in this case, by the project’s administrative supervision office,
accompanied by the application sheets of the appropriate professional
association)
• Confirmation of the deposit of a guarantee
• Authorization program for independent parts of the construction or
approval of partial projects, if requested by the promoter
• In cases of renovation/expansion of buildings included in the general
catalog of protected elements in historic city centers or historic centers
of peripheral districts and historic colonies, a color photographic
description of the existing building that permits, during enlargement
operations, confirmation of the correct alignment of the enlargement
plans with the historic city zoning restrictions
• License of parceling, if the new construction needs previous parceling
• Official alignment, if required
• Project design of installation of telecommunications infrastructure
Real Decreto 346/2011
• Project design of the use of solar energy for heating (either as an
independent project design or as part of the general project design),
signed by a qualified technician and countersigned by the appropriate
official institute, if required by the Regulation Concerning the
Harnessing of Solar Energy for Thermal Use
• Reglamento de seguridad contra incendios en los establecimientos
industriales RD 2267/2004, de 3 de diciembre, modificado en parte por
el RD 560/2010 de 7 de mayo
• Security and health certification or a basic certification regarding RD
1627/1997 de 24 de octubre
• Certify the destination of all the construction waste and demolition
(RCD) according to the Law 5/2003 and amendments by Law 9/2010
(regarding abandoned and discharged wastes)
This procedure is regulated by the Ordenanza Fiscal Municipal
Reguladora del Impuesto sobre Construcciones, Instalaciones y Obras
(ICIO), dated October 9, 2001. According to article 19.2 of this
regulation, the granting of any building license is taxed by at 4% of the
construction value.
Agency: Municipality of Madrid
Receive random inspection
According to the building license, one on-site inspection must be
carried out during construction and one at the end of the process.
If, during the inspections, the committee detects any possible
infringements of the building regulations or criminal law, a proposal on
3 sanctions must be made, and a copy of the written record is given to 1 day no charge
the public prosecutor. At minimum, administrative proceedings are
initiated.
In each inspection report, a record is included that provides information
on every person involved and their roles, as well as on the facts,
circumstances, dates, and results of the inspection. The record is
regarded as a public administrative deed. The record must be signed byDoing Business 2015 Spain 28
Time to
No. Procedure Cost to complete
complete
the inspector(s) and by the person to whom the construction works
have been attributed at the time of the inspection.
Agency: Entidades Colaboradoras Urbanisticas - ECU
Request and receive final inspection in connection with the
operating license
Private collaborating entities (ECU) carry out the inspection and issue
the declaration of conformity at the end of the construction works.
BuildCo must pay a fee to the collaborating entities. The amount is EUR
2600 for the first 500 square meters and additionally EUR 1.25 for every
additional square meter. The cost details to request and receive final
4 inspection is provided on the official website of the Municipality of 30 days EUR 3,601
Madrid, www.munimadrid.es. The legal basis is Agreement of the Local
Government Board of the City Council of Madrid, dated September 26,
2013, setting the maximum price for services of the private
collaborating entities for 2014 (Official Gazette of the City Council of
Madrid N. 7015 (09/30/2013)).
Agency: Entidades Colaboradoras Urbanisticas - ECU
Request and obtain operating license ("licencia de primera
ocupacion")
The purpose of the operating license is to verify that the construction
and activities have been executed according to the project and the
conditions under which the license had been granted, and that the
construction has been completed and is adequate for urban
determinations, the atmosphere and the security of its specific
destination.
As soon as construction is finished, in order to receive the first
operating license (licencia de primera ocupación), the builder must
submit the following documents to the ECU:
• Final certificate of terminated construction (declaration of conformity),
which must be signed by the technical director of the work. This
5 certificate must declare that the constructed building is in accordance 30 days EUR 603
with the issued license. For modifications that do not need approval of
the City Council (23.2 of the Ordenanza Municipal de Tramitación de
Licencias Urbanísticas de 23 de diciembre de 2004), the builder has to
detail these modifications.
• If urbanization works have been carried out simultaneously with
construction, and this urbanization was completed by the builder, the
builder must present the final certification of these works.
• Certificado final de obra visado por el Colegio Profesional y Plan de
Autoprotección (Ordenanza Municipal de Tramitación de Licencias
Urbanísticas de 23 de diciembre de 2004 - BOCM de 7 de enero de
2005)
The cost is as follows: EUR 206.55 for surfaces up to 500 square meters
and EUR 49.45 for every additional 100 square meters until 20,500
square meters.Doing Business 2015 Spain 29
Time to
No. Procedure Cost to complete
complete
Agency: Municipality of Madrid
Register the new building
Registration fees cannot exceed EUR 2,181.00 according to Real
Decreto 1427/1989, de 17 de noviembre, por el que se aprueba el
arancel de los registradores de la Propiedad.
Notary and registration fees depend on the value of the building. For a 18 days EUR 1,274
6
warehouse value like the one described in the case study, the cost to
register the warehouse is approximately EUR 1,273.60 (Notary fee:
441.04 + Registration fee: 832.56).
Agency: Property Registry
* Request and obtain water connection
If the flow of water is less than 6 liters per second or if fewer than 25
counters are needed in one hall, only the following documents must be
submitted:
• Technical report (Memoria técnica), not required if the flow of water is
less than 3 liters per second
• Form 2.1.4
• Confirmation of fee payment (EUR 12.28 must be paid at the counter)
• Two copies of Form 2.1.3 (Impreso de Final de Obra)
7 2 days EUR 1,200
If the required flow of water is more than 6 liters per second or if more
than 25 counters are needed in one hall, the following additional
documents must be filed:
• Project design from an engineer specialized in planning water
facilities
• Fee (in this case, a certain percentage of the budget)
Agency: Canal de Isabel II
* Takes place simultaneously with another procedure.
Note: Online procedures account for 0.5 days in the total time calculation.
Source: Doing Business database.Doing Business 2015 Spain 30
GETTING ELECTRICITY
Access to reliable and affordable electricity is vital for WHAT THE GETTING ELECTRICITY
businesses. To counter weak electricity supply, many
firms in developing economies have to rely on self- INDICATORS MEASURE
supply, often at a prohibitively high cost. Whether
electricity is reliably available or not, the first step for Procedures to obtain an electricity
a customer is always to gain access by obtaining a connection (number)
connection.
Submitting all relevant documents and
What do the indicators cover? obtaining all necessary clearances and permits
Doing Business records all procedures required for a Completing all required notifications and
local business to obtain a permanent electricity receiving all necessary inspections
connection and supply for a standardized warehouse,
as well as the time and cost to complete them. These Obtaining external installation works and
procedures include applications and contracts with possibly purchasing material for these works
electricity utilities, clearances from other agencies Concluding any necessary supply contract and
and the external and final connection works. The obtaining final supply
ranking of economies on the ease of getting
electricity is determined by sorting their distance to Time required to complete each procedure
frontier scores for getting electricity. These scores are (calendar days)
the simple average of the distance to frontier scores Is at least 1 calendar day
for each of the component indicators. To make the
data comparable across economies, several Each procedure starts on a separate day
assumptions are used. Does not include time spent gathering
The warehouse: information
Is owned by a local entrepreneur, located Reflects the time spent in practice, with little
in the economy’s largest business city, in follow-up and no prior contact with officials
an area where other warehouses are Cost required to complete each procedure
located. For the 11 economies with a (% of income per capita)
population of more than 100 million, data
Official costs only, no bribes
for a second city have been added.
Excludes value added tax
Is not in a special economic zone where
the connection would be eligible for
subsidization or faster service. Is to either the low-voltage or the medium-
voltage distribution network and either
Is located in an area with no physical
overhead or underground, whichever is more
constraints (ie. property not near a railway).
common in the area where the warehouse is
Is a new construction being connected to located. Included only negligible length in the
electricity for the first time. customer’s private domain.
Is 2 stories, both above ground, with a total Requires crossing of a 10-meter road but all
surface of about 1,300.6 square meters the works are carried out in a public land, so
(14,000 square feet), is built on a plot of there is no crossing into other people's
929 square meters (10,000 square feet), is private property.
used for storage of refrigerated goods
Involves installing one electricity meter. The
The electricity connection: monthly electricity consumption will be
26880 kilowatt hour (kWh). The internal
Is 150 meters long and is a 3-phase, 4-wire
electrical wiring has been completed.
Y, 140-kilovolt-ampere (kVA) (subscribed
capacity) connection.You can also read
