How to and What Do I Need to Change the Ownership of an Activity License

29 de September de 2021

In the last year, many businesses and stores throughout Spain have had to close their doors due to the crises following the pandemic. Many others have been forced to convert or have changed owners. And it is precisely to this last point that I am addressing today: how this procedure is done. Since many are lost, today I am going to explain how to change the ownership of an activity license.

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Contenido

1 What does the change of ownership of the activity license consist of?
2 Change the owner of the license
3 Request the Change of Ownership of the Activity License
4 Important Things about the Activity License
- 4.1 The Activity License is the Property of the Owner of the Activity, not of the Premises Itself
- 4.2 An Activity License of the Business is Something Hereditary
5 What to do if the change of ownership is not achieved

What does the change of ownership of the activity license consist of?

In itself, the change of ownership of the activity license is transferring a business already in operation to another person. In general, most businesses and commercial premises need to have an activity license.

When this business or store is transferred to another person who becomes the new owner, the option is to also transfer the license. This makes things easier for the new owner, since it is always faster to keep the business license than to start from scratch and apply for the corresponding license.

It is true that this is not mandatory for all businesses. Due to legal updates in recent years, there are businesses that only need to have a responsible declaration instead of the traditional activity license. In itself, they imply the same thing: demonstrating to the relevant authorities that the premises meet the necessary conditions to be able to carry out the activity for which it is intended. And that the authorities approve it, of course.

The activity license should not be confused with a first occupancy license or a building permit. The latter demonstrate that the premises are legally constructed. But one thing is the license of the premises itself and another is the activity license.

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For example, a premises may have the corresponding occupancy license because the premises is built in accordance with the legislation. But, on the other hand, it does not have the activity license to be a restaurant, which will have to be requested and, in many cases, undertake small reforms in the premises to be able to obtain it.

Change the owner of the license

To avoid starting the application process from scratch, it is good to carry out the change of ownership of the activity license of the premises to the new owner. This makes things easier, especially in terms of time, for the new owner.

But it is important that you keep in mind that this change can only be made if the premises is going to be used for the same activity that was carried out before, the same one for which the corresponding city council already granted the activity.

In the event that the premises you acquire is going to be given a different use and carry out a different activity, it will necessarily be necessary to apply for a new activity license from the city council.

You should also know that not all city councils allow this transfer of the license for all types of premises. Municipal regulations may establish certain conditions and exclude some types of businesses or premises from this possibility. In such a case, you will have to apply for a new activity license, yes or yes.

It is best to consult with the city council where the premises is located about the possibility of carrying out the transfer.

In general, most city councils that this transfer cannot be carried out if:

Reforms have been carried out on the premises before the restart of the activity.
If the holder of the original activity license does not give their consent to the transfer.
If the activity subject to the license has stopped being carried out for a period of time before resuming with the transfer.

Another important fact that you should take into account is that requesting the transfer of the activity license will imply that we demonstrate to the city council that the activity will be the same. For this, they may require several requirements to verify that this is the case.

Request the Change of Ownership of the Activity License

Once the transfer of the premises is carried out, the old owner agrees and the premises meets the requirements, it is time to proceed with the application for the change of ownership.

For this, we must present certain documentation to the corresponding city council. In this case, each consistory also has its own regulations.

But in general, documentation referring to the owner will be requested, such as:

Registration in the IAE;
DNI;
Rental agreement, deeds, etc.

Also others referring to the previous owner:

Authorization for the change of ownership of the license
Original activity license

And of course all those technical reports that demonstrate to the technicians of the city council that the premises will be used for the same activity that had been carried out until now. Also any documentation or report that demonstrates the ideal state of the premises for the development of the activity.

Do warehouses also need an activity license?

Important Things about the Activity License

There are small situations that often lead to confusion due to ignorance of the legislation in this regard. I explain some important facts about the activity license that may affect the change of ownership.

The Activity License is the Property of the Owner of the Activity, not of the Premises Itself

This implies that if the premises is rented, it is not the owner of the premises who will transfer the activity license to us, but the person who owned the business. It is important that you know this, since many owners of rented premises try to keep the activity license in order to rent the premises more expensive in the future.

This cannot be done since, as I have explained to you, one thing is the owner of the rented premises and another thing is the owner of the activity license.

An Activity License of the Business is Something Hereditary

So that if the owner dies, it is transferred as part of the inheritance to the heirs. Usually their children.

What to do if the change of ownership is not achieved

In the event that the requirements to proceed with the change of ownership are not met or it is denied once requested, the only option left is to apply for a new activity license.

Keep in mind that the change of ownership of an activity license is not very frequent. Although the activity is going to be the same, it may be worthwhile to request a new one from scratch in order to make modifications in the future more easily.