Want to make your dreams come true, open your own nightclub, and make a living doing what you love? Go for it, however, you will have to make sure you have a few things in place beofre you go for your dream job. Opening a nightlife venue entails taking into account a series o legal criteria and applying for a few permits before opening a new venue.
Below we show you how to manage these procedures. We will talk about what is established by your autonomous community when undertaking this type of initiative, the procedures established by the tax office for this type of actions, and the other licenses to apply for when opening a nightclub.
Previously we have talked about the licenses that are required to open some nightlife venues such as night clubs, cocktail bars, event halls, party halls and others that are requested to the local authority. Now, we want to talk about other important aspects and procedures to be able to start up the business.
To open the doors of a club not only you have to put in knowledge to the City Council, but also, to realize a series of managements before the Autonomous Community, the Tributary Agency, the Social Security, among other dependencies to fulfill the obligations that the regulation establishes and to be able to initiate the activity.
These steps are necessary because, firstly, this is what the regulations dictate and secondly, because some of them are essential to comply with certain mandatory requirements.
Formalities with the Autonomous Community to open a club
Register the company in the registry of companies and public spectacles: in order to be able to exercise the commercial activity, the company must be registered in the registry of companies and public spectacles, which depending on the autonomous region may be called differently.
Commercial Register: the company must also be registered in the Commercial Register of the province in which it is going to operate. In this case, the freelancers are not obliged, however, it can be beneficial for the publicity of the business and to contact suppliers.
Identification plate: it is necessary to obtain the identifying sign with the official distinctive of the specialty in which the establishment is classified. In the case of a leisure and entertainment establishment, it is the letter “E”, and it must be placed at the entrance of the establishment between two special methacrylate plates for outdoors.
Complaint Sheets: it is mandatory to have Complaint Sheets to provide the customer when requested, therefore it is necessary to request them to the corresponding Autonomous Community.
Formalities in the Tax Agency to start up a nightclub
To start up a club we have to carry out some fiscal formalities, that is to say, to notify the Tax Agency that we are going to start a business activity.
Census Declaration: the first thing to do is to make a Census Declaration, which is the declaration of the beginning of an activity, either as a freelancer or as a businessman. The Census Declaration is made through the presentation of the models 036 or 037, in which all the data of the establishment and the type of activity that is going to be developed is informed.
Obtaining the CIF or NIF: the Tax Identification Number is necessary to be able to issue or receive invoices. This procedure can also be carried out by filling out form 036 of the Tax Authorities.
Register in the IAE: when the nightclub or cocktail bar is already operating, it must be registered in the Economic Activities Tax, IAE, which is the tax applied to the companies and self-employed that carry out a professional or business activity. And the registration in the VAT. In this case, the 840 or 848 form must be presented, where you will define the activity that is going to be carried out.
Communicate the IRPF regime chosen: this communication must be presented within a maximum period of 6 months after the opening. You can opt for the Direct Estimation Regime (normal or simplified) or the Objective Estimation Regime.
Social Security formalities. Solve the problems as soon as possible
In order to get the business up and running, it is also necessary to carry out a series of formalities with the Social Security Treasury Administration.
Register with the Special Regime for Freelance Workers: this procedure is mandatory for individuals.
Register the employees in the Social Security
Register the company: it is necessary to inform the General Treasury of the Social Security of the start of an activity.
Occupational Risk Prevention Plan: the ORP is mandatory for all companies with at least one employee. For freelancers and companies with less than 25 employees, advice and training are provided to enable them to manage occupational risks.
Mandatory signs in a nightclub
Establishments such as nightclubs, party halls, karaokes and pubs are required to have the following signs:
The Opening License: the Operating or Opening License, which was issued by the local authority and which allows opening to the public, must be displayed in a visible place of the establishment.
Opening and closing hours of the venue: this sign must specify the hours in which the activity is carried out, which will depend on the category of the business and the Autonomous Community or municipality in which it operates. For example, in the Community of Madrid, clubs, dance halls, nightclubs and similar establishments, have a timetable from 5:00 p.m. to 5:30 a.m., while cocktail bars must respect a timetable from 1:00 p.m. to 3:00 a.m.
Capacity of the premises: it is necessary to announce the total capacity of the establishment and in some cases by sections.
Prohibited entry to minors under 16 years of age: this information may vary depending on the City Council and Autonomous Community. The signs must be placed both inside and outside the establishment.
Prohibited the consumption and sale of alcohol to minors under 18 years of age: selling alcoholic beverages to minors is penalized, therefore the sign with this legend must be displayed both at the entrance and at the place where beverages are supplied.
The sale of tobacco to minors is prohibited: in the event that tobacco is sold the law prohibits its sale minor under 18 years of age and it must me announced to customers
Smoking is prohibited: the Law on health measures against smoking prohibits the consumption of tobacco in nightlife centers that are closed, except those that have a specific area for this purpose.
Complaint forms are available: it is also mandatory to display the sign of the existence of Complaint Sheets for when the customer so requests.
Other procedures to be carried out to open a nightclub
Likewise, there are other permits that you will have to take into account to open the business, that although not all are obligatory, they are essential for the goo operation of a nightclub
SGAE License: There are three entities in charge of managing music rights: SGEA, which manages the rights of authors, AGEDI, which manages the rights of record companies, and AIE, which manages the rights of performers.
The license must be paid to the Sociedad General de Autores y Editores, SGAE, since it has an agreement with the other entities to collect and subsequently is responsible for paying its share to each one.
The license includes the musical and/or audiovisual reproduction of the SGAE repertorie and the license fee for businesses, such as nightclubs, dance halls, “tablaos flamencos”, concert halls, varies according to several factors such as: the gross area of the premises, days and sessions of weekly opening, the type of access and reference prices of tickets and drinks.
Data protection: the Law obliges you to protect the data of the people to whom you have access, therefore, it will be essential to prepare the declaration of personal databases of employees, suppliers and customers themselves.
Authorization for the sales of tobacco: although it is not usual in nightclubs and event halls, it is in the bars; if you want to sell tobacco in your establishment, you must request authorization from the Tobacco Market Commission, which together with the license will give you the guidelines you must follow to sell the product.