Company Formation Steps and Requirements

Posted on Jul 18, 2025 in Law

Company Formation Procedures

NAME	DEFINITION	PLACE
NEGATIVE CERTIFICATION OF NAME	The first step is to obtain a certificate from the Central Business Register stating that no other company has the same or an identical name.	Section of denomination of the Central Business Register.
CAPITAL INCOME IN A CURRENT ACCOUNT	Capital can be deposited in any bank. A certificate will be required. The amount to be deposited depends on the company type: Limited Partnership: 3,000 Limited Company: 60,000	Any bank or savings institution.
PREPARATION OF THE STATUTE AND GRANT WRITING BEFORE THE NOTARY	This involves: Certification of name refusal (if applicable). DNI and NIF of all founding members. Bank certificate stating the capital deposit. The Articles of Association detailing the company’s rules.	Any notary public.
APPLICATION OF TAX IDENTIFICATION CODE (CIF)	This code identifies the company for tax purposes, equivalent to an individual’s NIF.	Provincial Delegation of Finance for the company’s head office.
Payment of Transfer Tax and Stamp Duty	This tax is payable whenever the social capital is increased or decreased, or upon company dissolution. It covers capital transfers and legal documents.	Tax office of the corresponding Autonomous Community.
TRADE REGISTRATION	After settling the capital transfer tax and documenting legal acts, the company must be registered in the commercial register. This formalizes the company’s constitution and its economic and legal activities.	Commercial Register.

PLACE	DEFINITION	STEP
DELEGATION OF THE TAX AGENCY	The Tax on Economic Activities (IAE) is levied on anyone performing business, professional, or artistic activities within national territory, regardless of location.	Act in the position of economic activities
CITY COUNCIL	Opening Permit: Authorization to establish facilities for industrial and commercial activities. Required for initial openings, physical changes, or extensions of premises. Construction License: Municipal authorization for refurbishment works to adapt premises for business use, ensuring compliance with planning legislation.	License Opening Construction license
PROVINCIAL TREASURY MANAGEMENT OF SOCIAL SECURITY	Company Registration: Assignment of a unique employer identification number for social security obligations (contribution account code). Membership of Workers: Requirement to register and affiliate all employees entering service within the general scheme. Quote: Employer’s obligation to pay contributions for workers until their employment is officially recognized by the General Treasury of Social Security.	Company Registration Affiliation workers Quote
Local Labor Authority	The company must notify the labor authority about the workplace opening within 30 days.	Communication center opening
OFFICE (INEM)	The company is obligated to submit a copy of every employment contract to INEM within 10 days of its conclusion.	Reporting of work contracts