Web-Based Start-Up Business

 Hi All,

I am really looking for any advice really...

I am starting up a web-based business selling courses from different suppliers all around the world.  Think of laterooms(dot)com, but for suppliers of these courses.  My income is earned as an agent, therefore, I can go as autonomo until it makes enough to register it as a company - but, first things first...

My questions are:

1) 1 of the courses includes accommodation - and would be classified as a 'package' - are the differences in the terms and conditions the same as the UK 1992 directive...or, do they follow the EEC directive?  How can I protect myself?

2) Since there is an element of danger in these courses, do I need public liability insurance and if so, where is a good place to look for this?  Through my bank?  Is it expensive?  They must sign a liability release before starting the course btw with the organiser and I will supply this onsite, as the retailer.

3) Are there any kind of grants out there for people that want to launch a start-up in spain?  I am a resident.

As a start-up, my budget is pretty much non-existent right now...until launch...so, expensive laywers just aren't possible right now...

Thanks in advance!

what type of courses are we talking about - eductaion or adventure?

where will your clients/customers be based?

where will they attand the course?

If you are only acting as agent then you should be able to make that clear in the booking terms and conditions and at the same time insist course providers have proper insurance etc

Will you have any fixed place of business where members of the public can visit etc?

If you fall into the category of tour operator that that is a highly regulated area.

 Hi Faro,

Thanks for replying!  The courses are educational/adventure

Clients are worldwide...but, english-speaking...so, if you understand enough english to use the site, you can...although, if this was to work out, then I would eventually put it into other languages.

All courses will be held at the course-providers establishment, once the booking is made through my site, and the monies passed to the course provider, I would prefer to have as little to do with things after that - unless, of course I was forced to, due to an issue arising with a booking made...

I will have no fixed place where members of the public can visit.

I literally am just providing an online platform for course providers to sell their courses online in one place.  

I'm fairly sure that just makes me an agent, I will organise nothing, only sell the course providers courses online...(i will use payment gateways only - which I think covers me for a lot of the issues relating to payment issues too)

I would be really interested to hear your view on this.

Thanks!

will the courses be in Spain.

 potentially yes....dependent on the course provider that signs up...e.g. if they are based in spain, the course will be in spain...

Yeah, I think Faro is right.  You are only acting as an agent so you don't need to worry about all the stuff you mentioned in your post.

We promote various affiliate products and obviously it is up to each company that we promote to provide the service advertised and have the correct insurances in place.

If you are capturing people's details yourself then obviously you need to make sure you do follow the applicable data protection act.

In terms of grants, you need to find your nearest CADE branch (if you are in Andalucia) and talk to them.  They will say that they have some great grants for you, especially with a web based business, but just make sure you understand EXACTLY what they are offering and how it works.  We ended up not taking a grant because of the hassle and terms attached to it.

Best of luck.

Justin

If you are not going to have a fixed place of business in Spain and your customers are most likely not Spanish and your are not going to be receiving fees/money from Spanish resident businesses then I might consider a UK Ltd company or Irish Ltd company (if you are Irish).

In both countries it is very easy to incorporate and there is very little in the way of tax filing and all compliance for both Companies House and tax can be DIY. Also there is high VAT exemption limits. Tax work can mostly be done on an annual basis and there is no hassle from either UK or Irish tax authorities and all can very easily be done on line.

Spain on the other hand is tedious, there is no VAT exemption limit, you need to file quarterly tax returns, you will most likely need to engage a gestoria or accountant, company incorporation is expensive, and you will have to pay high social insurance contributions.

Example
Set up Spanish SL – EUR1,500 to EUR2,000
Maintain Spanish SL – EUR2,000 to EUR3,000 pa

With the UK/Irish company route you collect fees how/where you want and you pass on to course provider less your booking fee/commission – you do it your way and no gesteria telling you you have to do it the Spanish way and telling you all your UK/Irish invoices are invalid etc ……consider where you will be incurring expenses etc

If the business takes off and starts generating sufficient income to pay you a salary then you could consider declaring any fees you take from the company and declaring in Spain which you should do if you live full-time in Spain and you remit that money to your Spanish bank account etc

But you do need to be careful if your presence in Spain is noticeable and if you have a fixed place of business where members of the public can visit etc because then you could be classed as a tour operator and as I said before this is a very regulated area.

You should consider your business plan and how much money you anticipate making in 1-2-3 years etc and whether you need to be paying Spanish social insurance etc.

Basically do your homework and know exactly the pros and cons of the various alternatives.