Limbo: the legality of coworking

The legality of coworking depends on the interpretations made by its owners. The advantage and, at the same time, disadvantage of these spaces is their versatility: it can be and offer many things, but that means more paperwork.

Starting a business is always a real bureaucratic ordeal and even more so if your business model is not typified. In the eyes of the State you are an undefined entity, a weirdo company, forced to be an (a)legal Frankenstein's monster. The licenses, insurances, contracts and leases that a coworking will carry out will depend, to a large extent, on the business model and the spaces and services it provides. Therefore, in order to shed some light on this matter, the specialized consultancy Leco (Legal Coworking) produced, some time ago, a legal guide to coworking. It contains some tips and guidelines to guide future owners, streamline their business and not sink, with so much paperwork, in the attempt.

There are several aspects to consider:

" The founders and the incorporation of the company

One of the first things to take into account is to consider the legal form of coworking according to the future prospects. The formula of the self-employed, as owner of the company, may be sufficient if you expect to create a local and humble space. However, if the business is expected to grow, the easiest and most comfortable way is to create a multi-person company.

At this point, it is vitally important to draw up a membership agreement as a formal requirement. In this way, future problems of blocking, abandonment or non-compliance will be avoided. The rules of the game will remain on paper.

" Licenses

As we have already said, the versatility of coworking spaces, from a business point of view, can be a pain. In the absence of specific legislation, licenses have to be processed according to other categories, so you may end up needing as many permits as you have different spaces and services. According to the magazine Coworking Spain it is best to to process the main license under the office category and, if the company offers more services such as classrooms, kindergartens, catering, etc., the corresponding licenses should be requested.

In the most complex cases, the best thing to do is to go directly to the local council. This is a municipal matter, so each place may have different principles and rules. Who knows? Maybe we can get out of doing some paperwork.

" Space

In the case of developing the business activity in a rented space, it is important that you have the possibility of subletting. After all, a coworking facility rents space to other people to work in. If you do not have the ability to lease, your business model may be over.

In this line, it is also important to take into account that, if the holder of the rental contract is an individual, the expenses for gas, water, electricity... bills will be more difficult to associate to the coworking for the subsequent declarations.

" Activities

There is no possibility to register the coworking activity in the tax administration, so again we are in limbo. For this reason, all activities that take place in the space must be registered accordingly, whether it is a party, an event, an exhibition, conference, etc.

" The coworking contract

Another part of the bureaucracy is the relationship between coworking and coworker. We can't just call it a rental contract, that would be a lie. A space like this offers much more, but OH, SURPRISE! There is no regulation either. That is why, just as it happened with leasing contracts, the coworking contractThe coworking contract: a fusion of a rental contract and a service contract. It is an atypical document, not regulated but legal, as long as there is consent, object and cause as in any other contract.

The important thing about this agreement is to specify all the key points: define the services, define the hours, stipulate the price and method of payment, clarify confidentiality, the uses of the workstations, establish the operating rules and responsibilities of the coworker, draft the causes for termination and include the section on data protection.

" Prevention of Occupational Risks

As in any company, whenever a group of people work sharing a workspace, the law obliges them to follow the regulations on occupational risk prevention. In other words, the owner of the center is obliged to include adequate safety measures and is responsible for preventive activities. If you have ever taken a course on this subject, you will know that prevention is everybody's business. A coworking center is no exception.

" Internal regulations and action protocol

Finally, we wanted to include the internal regulations of the Coworking Spaces. Coworking Spaces. It is important to establish rules of use and conduct for the use of the space and the services offered. In this way, all coworkers will be well informed of their duties and obligations.

In addition, it is a good initiative to have a protocol of action exclusive to the founding partners of the space. If there are methods of action in conflict situations, it can save a lot of unpleasantness. It is always preferable to avoid any problems before they occur.

AUTHOR: CARLOS LLERENA

IT executive, entrepreneur, communicator and academic with international trajectory, expert in technology, marketing, project management and complex problem solving.

On the cover: image of the series Better Call Saul