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Open a Spanish Business for Repair of Motor Vehicles

Open a Spanish Business for Repair of Motor Vehicles

Foreign investors who want to open a company in Spain registered as a business for maintenance and repair of motor vehicles must know that the revenues of the industry have been steadily increasing since 2012. In that year, the revenues of companies operating as businesses for the maintenance and repair of motor vehicles in Spain had a total value of $17.21 billion, while in 2017, the value reached $20.96 billion; for 2018, the projections estimate a total value of $21.99 billion. 

Our team of lawyers in Spain can assist local and foreign businessmen with the registration steps that are necessary to accomplish when starting a business here for maintenance and repair of motor vehicles and may also advise on the business permits required for the industry, but also on any special employment regulation that could be applicable to this sector.  

What are the main steps in opening a Spanish company? 

When starting a company in Spain, a local or foreign businessman has to complete a set of steps that are available regardless of the business field in which the company will operate. One of the first decisions refers to the company’s business form. Most of the Spanish companies are registered as limited liability companies, but other options can be also suitable for a business for the maintenance and repair of motor vehicles.

One of the legal requirements is to incorporate the company in front of a public notary and our team of Spanish lawyers can advise on the documents that have to be submitted in this case (the company’s articles of association are necessary, alongside with other documents). A local company will also need to obtain a tax identification number, a company name certificate or to open a corporate bank account. Investors may contact our law firm in Spain for in-depth assistance regarding these matters.  

What are the main maintenance and repair services available in Spain?

Companies in Spain that offer maintenance and repair services for motor vehicles are specialized in offering a wide range of services for various types of motor vehicles. Such services can cover all the key components of a vehicle – it electrical and electronic systems, transmission, heating and cooling components, engines and others. Some of the most common services are the following: 

  • general maintenance services – addressed to standard motor vehicles, off-road motor vehicles as well as to imported cars;
  • engine maintenance – common services include fuel injection, ignition, spark plugs and ignition cables;
  • • minor collision services – common repair services are offered for the repair of the windshield of a car, which is generally exposed to minor or large cracks;
  • car care – cars, trucks and other types of motor vehicles have to go through regular (every three months) car care services, by adding oil, lubes and filters; 
  • ITV (Inspeccion Tecnica de Vehiculos)  services – every car owner in Spain is required to complete a technical inspection of the vehicle and the procedure can only be performed in an authorized maintenance and repair services garage

Aspects to consider when starting a Spanish maintenance and repair services business

Prior to deciding to register a company in Spain, the investors are advised to establish a plan and determine the main needs for their future business, the overall costs, the conditions of the market, the main competitors or the characteristics of the potential clients. One of the key aspects of a maintenance and repair service business for motor vehicles in Spain refers to the value of the investment. Thus, it is necessary to determine the costs of the equipment needed for this type of activity. 

Furthermore, the investors will also have to decide if it is more suitable to purchase an available business or to set up a business by renting the necessary space in which the main operations can be developed and purchase the necessary equipment. Our team of Spanish lawyers can assist businessmen with advice on how to purchase a company in this country, if the first option is preferred.  

Why invest in the automotive industry in Spain? 

business for the maintenance and repair of motor vehicles in Spain is part of the automotive sector, which is one of the most important economic activities in this country. Spain is considered the second largest market in Europe regarding the manufacturing of motor vehicles, being represented by more than 1,000 companies operating in the spare parts manufacturing sectorOur law firm in Spain can provide in-depth information on the rules of law concerning the automotive industry

It is also important to know that the industry is an important employer, providing approximately 300,000 direct jobs and 2 million indirect jobs. At the level of 2016, the country manufactured 2.8 million vehicles, an increase of 5.9% compared to the previous year. Overall, the automotive sector in Spain accounts for approximately 10% of the country’s gross domestic product.