Key Agencies in Company Creation: A Step-by-Step Process
Key Agencies in Company Creation
K-Controls AYUNTAM law ensures security and environmental compliance, supporting entrepreneurs with resources and subsidies. It also manages municipal taxes, playing a fiscal role.
Tax Agency (Agencia Tributaria)
Employers must register their activity with the Tax Agency to join the fiscal census.
Ministry of Labor and Social Affairs
Plays a triple role in enterprise building:
- Controls entry into the social security system and conducts work inspections.
- Provides support and training to entrepreneurs through the National Employment Institute (INEM).
- Maintains specific records for social economy companies.
Autonomous Communities
Offer advice to entrepreneurs through public employment agencies, providing assistance and subsidies. They have varying fiscal responsibilities and manage records and activities. The Public Office handles legal documents and downloads.
Commercial Registry
Companies must register their constitution and name here. It legalizes required accounting records.
Chambers of Commerce
These institutions protect employer interests and improve commercial activities. They offer training and information for new business creation.
Notary Office
A public notary attests to private agreements and is required for company constitution.
Company Launching Procedures (2 Types)
Legal Personality and Name Accreditation
The process depends on the type of commercial company. Registration is with the Mercantile Registry (Reg. Mercantil Central) for commercial companies and with the General Directorate for cooperative societies.
When? After choosing a name and before starting the company.
Documents to Submit:
- Request for chosen name (including two optional names).
- Public Deed of Incorporation: A document reflecting the founders’ will to incorporate under drafted statutes. It’s recorded by a notary.
Minimum Content of Constitution and Statutes
This is contained in different laws. For limited companies, it’s reflected in Article 13 of the Law of Limited Partnerships, including the company name, social order, closing date, established social capital, and mode of organization.
Transfer Tax on Patrimonial and Legal Events
What is it? A 1% tax on share capital levied on the constitution of a society.
Where? Territorial service of economy and finance of the autonomous region.
When? Within 30 working days.
Request Tax Identification Code (High ACIENDA 036 or 037)
What is it? Company’s tax ID.
Where? Tax agency for the company’s fiscal domicile.
When? Within 30 working days.
Documents: Copy of public deed of incorporation and applicant’s ID.
Registration for Commercial Purposes
What is it? Advertising legal personality for commercial purposes.
Where? Commercial register for the company’s address.
When? Depends on the society.
Documents: Copy of the deed of incorporation and liquidation of capital transfer tax.
Additional Launching Procedures
Business Activity Tax (IAE)
What is it? A local tax on exercising business activities.
When? 10 days before the start of activity.
Documents: Tax ID number (CIF for companies, ID for individual entrepreneurs).
Duration: 1 calendar year.
Census Declaration
What is it? Joining the business tax roll.
When? Before starting commercial activity.
Documents: For companies, CIF; for individual entrepreneurs, DNI; in both cases, IAE registration form.
Presentation of Accounting Books
What is it? Submitting VAT books to the tax authority (affects professionals and individual entrepreneurs in simplified direct estimation).
When? Between the closing of the tax period and the deadline for income tax reporting.
Documents: No need to submit books; fill in a template provided by the tax agency.
City Council General Documents
Opening License
Documents: Application, accreditation, report, local route plan, photograph of the premises, installations project.
Processing Time: Within 6 months of submission.
Works License
What is it? Required before starting work.
When? Before starting work.
Documents: Application, proof of payment of municipal rates, company ID, budget plans.
Duration: Expires in 6 months.
Landfill Rates Registration
What is it? Municipal levy for waste collection and treatment.
When? Upon purchasing or renting local facilities.
Documents: Company or individual employer identification.
Duration: Annual.
Treasury and Social Security
Company Registration in Social Security
What is it? Required for all provinces with workplaces and workers.
When? Before starting work.
Documents: For companies, copy of the deed of constitution and ID; for individuals, representative’s ID.
RETA Registration (Self-Employed Workers’ Scheme)
What is it? For individual entrepreneurs, partners, employees, administrators, and optionally for cooperative members.
When? Within 30 days of starting duty.
Documents: IAE registration or tax ID, applicant’s ID.
Registration of Workers in the General Social Security Scheme (TA7)
What is it? Employers must register their employees for social security coverage.
When? Before employees start their service.
Documents: Worker’s ID, foreign worker identification (if applicable).
Note: Social security affiliation is unique and permanent.
Provincial Labor Delegation – Communication of Work Center Opening
What is it? Announcing the existence of a workplace to the labor authority.
When? Within 30 days of opening the center.
Documents: Company data, activity, workforce information.