What is needed to set up an E-Commerce business in Spain?
With the development of new technologies and the digital era, the way people do business has changed significantly. Many businesses are now 100% online. Having an online business can be a very appealing option nowadays.
If you are planning to set up an e-commerce business in Spain, there are different points to bear in mind. There are several possibilities under which you can operate. You can run your website as a freelancer or via a limited liability company (LLC).
E-commerce-related activities are regulated by diverse rules contained in Spanish legislation. A fundamental point to be aware of when undertaking any initiative in the area of electronic transactions is that the applicable legislation varies depending on the potential recipient of the related offer. If the recipient is a consumer, consumer protection legislation and data protection legislation will apply in the latter case.
Here is a summary of the 4 most important aspects and requirements to be mindful of when setting up an E-Commerce business in Spain:
1.Consumer protection legislation:
Whenever e-commerce activities are targeted at consumers, it is necessary to comply with consumer protection legislation, regulated in Royal Decree 1/2007, of November 16, 2007. Distance sale offers (either to consumers or to companies) must contain at some specific information regarding the identity of the seller and the contract ramifications. If you wish to incorporate general conditions clauses in your contracts, you have to make sure you comply with the Standard Contract Terms Law 7/1998.
2.Data Protection legislation when setting up an E-Commerce business in Spain:
Another aspect that may have e-commerce implications is the possible processing of any personal data in transactions of this nature.
“At present, the applicable legislation on these matters in Spain, as in the rest of the European Union, is the Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation), known as GDPR.”
3.Intellectual Property in E-Commerce Business In Spain
The legal protection of copyrights is crucial when engaging in e-commerce in the “information society”, since digital content protected by intellectual property rights (authorship, trademarks, image rights, etc.) constitutes the real added value of the internet. Website content will be afforded such protection as pertains to the specific category of the content (graphics, music, literary works, audiovisual, databases, etc.) and, therefore, the person in charge of the website must hold the related rights of anything published on it, either as the original owner (of the collective work under his management or developed by employees) or as a licensee.
4.E-commerce and information society services:
Law 34/2002 on E-Commerce and Information Society Services (ECISSA) defines as “information society services” any fee-based service provided, long-distance, through electronic means and upon individual request by the recipient, also including those not paid for by the recipient, to the extent that they constitute an economic activity for the provider.
Specifically, the following are deemed to be information society services:
- Trading of goods and services through electronic means;
- Organisation and management of auctions using electronic means or of virtual shopping centres or markets;
- Management of purchases via the internet by groups of persons;
- Sending of commercial communications;
- Supply of information through telematic channels; and
- Video on demand, as a service that the user may select through the internet and, in general, the distribution of contents upon individual request.
How can Lexidy help you?
At Lexidy, we can assist you with the setup of your e-commerce business and advise you on all the different aspects involved.