The steps to follow to establish a company are as follows:

1. Choose the legal form that best suits your interests. The most common forms are the Sociedad de Responsabilidad Limitada (S.L.) -Limited Liability Company and the Sociedad Anónima -Public Limited Company or Corporation (S.A.).
2. Request a certificate of availability of company name for registration. This certificate, issued by the Mercantile Registry, accredits that the chosen company name is not registered.
3. Open a bank account in the name of the company and deposit the share capital. Request a certificate of the deposit made from the bank.
4. Draft the company’s articles of association. These will contain the rules that govern the functioning and organization of the company.
5. Formalize the company’s articles of incorporation before a notary public. Execute the public deed before a notary public, presenting all the required documentation. A declaration of real ownership must also be executed.
6. Request a provisional Tax Identification Number (NIF) for the company from the State Tax Administration Agency (AEAT).
7. Settle the tax on capital transfers and documented legal acts. This tax is generally paid on a self-assessment basis, but incorporating a company is exempt from this tax.
8. Inscribe the company in the Mercantile Registry of Madrid. Register the company with the Mercantile Registry by submitting the company’s articles of incorporation.
9. Obtain a definitive Tax Identification Number (NIF) for the company, for which you must apply to the State Tax Administration Agency (AEAT). In your application, you must provide the registered deed of the company.
10. Complete other tax and labor procedures. Register for the Value Added Tax (VAT) and the Economic Activity Tax (IAE). Complete and submit form 036 to register in the Census of Businesses, Professionals, and Withholders (to do so, click here).