Essential Steps for Company Formation Procedures

1. Start-Up Procedures

The launch of the company requires a number of legal and administrative procedures which can be divided into two types:

• Formalities for the adoption of the legal personality: These are necessary for the company to be configured as a legal entity. Thus, in the case of sole traders or individuals, these formalities are not necessary.
• Overall process start-up: These are the procedures that all businesses must carry out, depending on the legal form adopted.

The completion of all necessary formalities allows the entrepreneur to start their business.

1.1. Procedures Concerning the Adoption of Legal Personality

The necessary procedures for the creation of any company are:

Certification Negative-Name

This is the accreditation that the name chosen by the company does not match an existing one for another empresa (company). It is managed depending on the type of company:

• Commercial companies manage it in the Central Commercial Register.
• Cooperative societies manage it in the Directorate General of the Institute for the Promotion of Social Economists.

It is managed once the name is chosen and before forming the company. There is a way to submit the request to be included in the chosen name and two alternatives. The certification is issued, usually within a week, and is valid for two months for corporations and for four months for cooperatives. If the company is not established within this period, the certificate must be renewed.

Industrial Societies Rating

This is a compulsory procedure only for social economy companies. It certifies that the project complies with the statutes and the law. It is managed at the provincial office of the provincial delegation of the regional administration's department of labor. It is managed when the statutes and the constitution of the society are complete, before filing the negative name certificate. You must file the name certificate, the minutes of the constituent assembly, draft bylaws, and a list of the promoters of the society. It resolves within 15 days after filing.

Public Deed of Incorporation

This is a public document that reflects the founders' willingness to incorporate the society under the statutes they have drafted. It is managed at a notary, because it is necessary to give the public document once managed by the notary. The founders decide to draw up the constitution after receiving the name certification and before submitting the name refusal. The constitution and statutes require a bank certificate of deposit demonstrating that the necessary capital has been deposited. It would be resolved immediately once the founders sign the deed.