Steps to Establish a Business: Legal and Administrative Requirements

Adoption of Legal Personality

• Certification of a Negative Social Denomination

  Applying for a name that meets the requirements prohibiting established commercial names. The regulation prevents the coincidence of the name of two or more companies. Applications must be made to the Central Business Register for companies, and to the Cooperative Society Registration for cooperatives. It contains personal data of the applicant. If six months pass without registration, it is canceled.

• Opening a Bank Account

  For some companies, a minimum capital is required, which can be deposited into a current account, where appropriate. The financial institution will issue a certificate of deposit that will be delivered later to the notary.

• Articles of Association

  This is the part where the rules that shall apply during the life of the company are laid down. It may be drawn up by a specialized shop.

• Grant of Deed of Incorporation

  An act by which the founders proceed to the signing of the deed of incorporation before a Notary. Deadline: No set deadline.

• Payment of Tax on Capital Transfers and Documented Legal Acts

  This tax is levied on the constitution of the company, and its amount is 1% of the capital. It is paid to the tax authorities within 30 business days following the formalization of the deed. Form: 600, copy of the deed of incorporation of the company, and ID or NIF.

• Request for Tax Identification Code (CIF)

  Identifies the companies for the purposes of their relations with the tax authorities. It is requested from the administration or delegation of the State Agency of Tax Administration. Form: 036 or 037 in the case of cooperatives; copy of the memorandum and copy of the applicant's ID. Within 30 days from the declaration of validity of the deed. The provisional CIF will be valid for six months until the definitive tax ID card is issued.

• Registration of Records

  In the Commercial Register of the province.

General Paperwork for Starting a Business

• Procedures in the Ministry of Economy and Finance

  • Economic Activities Tax (IAE)

    Only paid by enterprises whose legal form is that of a company and whose turnover exceeds 1 million euros. It is a local tax levied on the performance of business, professional, and artistic activities. It must be paid within ten days before the start of the activity and is valid for one year. Documentation: Form 840 and ID or CIF.

  • Census Declaration

    A document that reports on the characteristics of the local activity and the chosen tax method. It must be paid before the start of the activity. Documentation: Form 036 or 037, photocopy of Tax ID, and proof of registration in the IAE.

• Procedures in the Commercial Register

  Social Documentation:

  • SA (Public Limited Company): Book of bearer shares and regulatory actions.
  • SL (Limited Liability Company): Book of partners or record of shares.

• Procedures to Register a Cooperative

• Procedures in the Municipality

  • Activities or facilities license or opening license, which accredits that the facilities comply with the regulations.
  • Construction license.
  • Registration for the garbage collection fee.

• Procedures in the Ministry of Labor and Immigration

  • Registration in Social Security (SS)

    Mandatory for employers making hires. Documentation: Registration in the SS using form TA6, before contracting workers. It is carried out at the Treasury of the SS.

  • Special Regime for Self-Employed Workers (RETA)

    For individual micro-entrepreneurs and those who exercise the functions of directors and management or hold direct control of the company. Deadline: 30 calendar days. Form: TA1. It is carried out at the Treasury of the SS.