It is becoming more and more common that people become self-employed instead of looking for a job. Entrepreneurship, the options to create their own companies and, above all, not having to put up with a boss have made many consider this option, the first few months of which are quite cheap. But, how to register as self-employed in Social Security?
If you are considering it but it is not clear to you what you have to do or the procedures that you must carry out, then we will tell you everything.
What does it mean to be autonomous
Being self-employed can be a dream for many due to what is said about them: they do not have a boss, they can work when they want, they take their vacations when they want... But the truth is that the day-to-day life of a self-employed person is much more difficult of what is thought.
To begin with, they need to find their customers and, unless they earn enough, they act as professionals, accountants and many other positions since they take care of everything related to paperwork, taxes, billing, personnel selection, etc.
The fees are high when you don't have any bonus, and they have to pay taxes that can destroy a month's salary at a time. In addition, if they get sick or want to retire, what they get is much less than an employee (and currently they do not have early retirement, although it is recognized but without any regulation that regulates it).
Despite all the bad things, there are obviously good things, which is that, in many cases, a freelancer can get to earn more money than an employee, In addition to being able to work with several clients or on several issues at the same time without owing “exclusivity” or “loyalty” to the company that has hired you (as is the case with contract workers).
Who must register as self-employed?
According to Social Security itself, as we have seen, Anyone who does work on their own on a regular basis must register as self-employed. And that implies that the amount of income is not taken into account.
Now, although Social Security itself at the beginning was of the opinion that, if the international minimum wage was not reached, it was not necessary to register, now or so it is and, whenever there is activity, it is necessary to register.
But who are the ones who are obliged to do so? Would:
- People over 18 years of age who carry out a habitual activity and charge for it.
- Professionals who, in order to work, have to register with a professional association.
- Economically dependent self-employed workers (those who invoice more than 75% with a single client).
- Foreign self-employed who carry out their activity in Spain.
- The administrator or director if he has a 25% participation, as well as the partners with a 33% participation. Also relatives up to second degree who have 50%. All this in Limited Companies.
- Members of an Associated Work Cooperative.
How to register as self-employed in Social Security
Now that you understand all of the above, we are going to explain how to register as self-employed in Social Security step by step. It is not difficult and today you can do the entire procedure online, which means that in just a few hours you will be formally.
What are those steps?
Social Security
The first procedure you have to go through to your self-employment registration is Social Security. There you must start the procedures to join the Special Scheme for Self-Employed Workers, better known as RETA.
It really is the first step, although many people do the second first and then this one. As long as there is no 60 days difference between one and the other, you have nothing to worry about.
What is done in Social Security? You have to fill out the TA.0521 form. This can be delivered personally to provincial addresses, or through the Internet if you have a digital certificate.
Here it is very important to choose what the contribution base is. Normally all freelancers choose the lowest. In addition, you will make compulsory contributions for common contingencies, but professional contingencies, or unemployment, are up to each individual (it is also true that this raises the fee to be paid).
Estate
The next step (or the first if you want to do it that way) is to go to the Treasury to register in the census of entrepreneurs and professionals (known as IAE).
For this you will have to fill in form 036 or 037. Which is the best? Well, if it is a company or legal person, 036; If it is a natural person who is going to be self-employed, it can be 037.
Here you must take into account that box 504 (in form 036) allows you to have a deduction of previous expenses when you start the activity. But for this you have to register before submitting invoices.
There is another document, called Single Electronic Document (DUE) found at the Entrepreneur Service Points (PAE) which greatly simplifies steps one and two (because you automatically register with the Treasury and Social Security with the same document).
The City Council and the Work Organization
You will only have to carry out these procedures if you are going to start up a physical business, that is, you need a local opening to be able to work.
La opening license, which is managed at the Town Hall, you only have to ask for it if you have a business of more than 300 meters. If not, you will only have to have a Start Responsible Declaration. This must be presented to the Local Administration and you must pay a municipal fee.
Also, if you are going to do work to refurbish or improve the premises, you will have to go to the Town Hall first to apply for a building permit, pay it and wait for it to be granted.
In the case of the opening communication, you have to inform the competent Labor Organization of it, and you have to do it within a period of 30 days from the time it is opened.
Once you have done all these procedures you will be officially self-employed. But, as we have told you, you should only carry out the latter if you are going to have a physical business. If you are going to work online or in your own home, it would not be necessary to do so.
Do you still have doubts about how to register as self-employed with Social Security?