When starting a new business, priorities tend to focus on attracting customers, developing the product or service, and consolidating the business model.However, just as important as all of this — and sometimes even more urgent — is having rigorous and professional accounting and tax management from the outset. At Gutiérrez Pujadas & Partners, we offer a specialised service for start-ups and small businesses, with a particular focus on one of the main corporate obligations: the preparation, approval and filing of annual accounts.
If you are starting a business or have set up a limited company, this article will help you understand why it is essential to comply with these requirements and how we can help you.
Find out about our comprehensive service here
What are annual accounts and why are they mandatory?
Annual accounts are the set of documents that give a true and fair view of the company’s assets, financial position and results for a financial year. According to Article 253 of the Consolidated Text of the Capital Companies Act, all commercial companies are required to prepare their annual accounts within a maximum period of three months from the end of the financial year (normally before 31 March if the financial year ends on 31 December).
The set of documents that make up the annual accounts includes:
- Balance sheet
- Profit and loss account
- Statement of changes in net equity
- Cash flow statement (mandatory only for companies that cannot present abbreviated accounts)
- Explanatory report
These accounts must be approved by the general meeting within six months of the end of the financial year (usually before 30 June) and filed with the Commercial Registry in the month following their approval (before 30 July). Failure to comply has serious consequences, including:
- Fines of up to 60,000 euros per financial year, according to Royal Decree 2/2021.
- The closure of the company’s registration sheet, which prevents the registration of corporate acts (expansions, changes of administrator, etc.).
- Inability to participate in tenders, public aid or bank financing.
What other accounting and tax obligations does a new company have?
In addition to the annual accounts, commercial companies must comply with other obligations established by the General Accounting Plan (RD 1514/2007) and Spanish tax regulations. These include:
Mandatory accounting books:
- Journal
- Inventory Book and Annual Accounts
- Company books: Minutes Book, Shareholders’ Register
All these books must be submitted to the Commercial Registry by electronic means within four months of the end of the financial year.
Usual tax obligations:
- Form 200: Annual corporation tax
- Form 202: Instalment payments on account of corporation tax
- Forms 303 and 390: Quarterly VAT returns and annual summary
- Form 349: Intra-Community transactions
- Forms 111 and 190: Withholdings and payments on account for income from employment or professional activities
What if I am self-employed or a freelancer?
In the case of self-employed workers, there is no obligation to file annual accounts or keep accounts in accordance with the PGC, but they must:
- Keep a detailed record of income, expenses, investment assets and invoices issued/received.
- Comply with quarterly VAT returns (form 303) and personal income tax returns (form 130 or 131).
- Submit the income tax return (form 100).
- Submit forms 390, 347 and, if applicable, 349.
Many professionals start out as self-employed, but as their income increases, they choose to set up a limited company. In both scenarios, technical advice from the outset is key to avoiding mistakes and optimising taxation.
How Gutiérrez Pujadas & Partners can help you from day one
Our firm provides a comprehensive service for entrepreneurs and small businesses that wish to outsource their accounting with full legal guarantees, avoiding penalties and maximising tax efficiency from the outset.
Our services include:
- Preparation, legalisation and filing of annual accounts
- Preparation and filing of corporation tax
- Keeping and legalising accounting and company books
- Quarterly and annual tax management (VAT, personal income tax, withholdings, etc.)
- Registration of transactions with third parties and submission of information forms
- Advice on deductions, allowances and tax planning
- Consultancy on optimal corporate structures according to income volume
Advantages of working with Gutiérrez Pujadas & Partners if you are starting a business
- Specialisation in start-ups. We understand the reality of small companies, start-ups and freelancers who are just starting out. We tailor our services to your real needs, without unnecessary processes or hidden costs.
- Strategic support. We don’t just do the work for you: we help you understand each step, optimise your tax situation and build a solid and efficient company.
- Prevention and guaranteed compliance. We stay ahead of legal deadlines, review every tax return and keep you informed at all times.
Are you starting a business? Get off to a good start
Whether you have already set up your company or are considering the best legal form for your business, at Gutiérrez Pujadas & Partners we can help you avoid mistakes, penalties and unnecessary costs.
Find out more about our service for new companies here.
Request a no-obligation initial meeting, and we will explain how we can help you comply with accounting and tax regulations from day one.