Start your business

What does the process to start your business?

Through this procedure, you can carry out the constitution and launch procedures for your company electronically. This way, we prevent you from making trips and save on time and costs.

You can also perform this procedure in person by going to the nearest Entrepreneur Assistance Point (PAE), where they will assist you in creating your company and provide guidance on the effective start of your business.

What are the main benefits?

Flexible legal framework

You will have a more flexible legal framework, and in just a few days, you can establish your company with contributions as low as €1.

Capital Contribution

Very reduced minimum share capital and no maximum limit. You can contribute it in assets or monetary amounts.

Reduced Taxation

Enjoy reduced taxation based on your profit volume.

Managing body

Center for Business Creation and Network Information (CIRCE) 

Approximate timeframe

Around 24 hours. 

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To whom is the procedure addressed?

  • Individual Entrepreneur (Self-Employed) (developed in another specific procedure).
  • Limited Liability Company (LLC or Ltd.).
  • Community of Property (procedure not developed as it is not the required legal form for innovative entrepreneurs).
  • Civil Partnership (procedure not developed as it is not the required legal form for innovative entrepreneurs).

You can check the enabled procedures for each of these profiles on the following MAP within the CIRCE system via

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What documentation do you need?

  • Negative certificate of the company name obtained from the Central Mercantile Registry (the acquisition of this certificate has been explained in the previous step 1, "Reservation of the Social Denomination"). The current cost of the negative certification of the company name is 18.19 euros. You can check the applicable fees on the website of the Central Commercial Registry.
  • Certificate of capital contribution or statement from the partners about its accuracy, explained earlier in step 2, "Capital Contribution."
  • Required documentation for partners:
    • Copy of the ID of all of them.
    • Copy of the Social Security Card for those partners who register with any Social Security scheme (or another document proving the affiliation number). If they are not affiliated, the DUE requests affiliation.
  • Employees (if any):
    • Copy of the ID of all of them.
    • Copy of the Social Security Card (or another document proving the affiliation number).
    • Employment contract or hiring agreement or authorization to register with Social Security.
    • Negative certificate of the social name, i.e., a certificate proving that there is no other company with the same name as the one intended to be established.
  • Foreigners: Community NIE or NIE and residence and work permit for self-employment.
  • Foreign capitalist partners (without residence or activity in the company) must provide the NIE for economic matters.
  • Married partners: ID or NIE of the spouse.
  • Economic Activities Code.
  • Activity code according to the National Classification of Economic Activities (CNAE).
  • Data on the company's address and business activity (including: square meters of the activity location, postal code, and phone number).
  • Percentage of participation in the share capital, type of contribution (monetary or non-monetary).
  • Data of the manager/s and type of administration (individual, joint and several, or joint).
  • Married partners: marriage regime.
  • Information will be required to make the payment to the Provincial Mercantile Registry (RMP); this payment will be made by direct debit, and it will be necessary to provide an account number or a bank card.
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What are the steps you should follow?

Step 1. Reservation of the Corporate Name.

Request from the Central Commercial Registry the negative certification of the corporate name for your future company. In this step, you must demonstrate that the name of your company is neither assigned nor reserved by another entity. The current cost of the negative certification of the company name is 18.19 euros. 

Step 2. Contribution of Share Capital.

The share capital cannot be less than €1 and shall be expressed precisely in that currency. Furthermore, it must be fully subscribed and paid up at the time of incorporation.

Step 3. Access to the CIRCE System.

Access the CIRCE System website and log in with your digital certificates to enter the Virtual PAE application. 

Once inside, select 'Creation and cessation of companies' and then 'Available Procedures' where the provinces where the procedure for creating your company is available will be displayed.

Step 4. Single Electronic Document.

Complete the Single Electronic Document (DUE) by entering information associated with the following sections:

  • Physical Partners' Information.
  • Description of the legal form.
  • Location of the business activity development center.
  • Description and relevant information about the economic activity (census declaration, property transfer tax, brand registration, data protection, employee registration, and notary for the public deed of company incorporation).
Step 5. Submission of information to competent authorities.

The telematic processing system (STT-CIRCE) will send to each competent authority the relevant information from the DUE to carry out the procedure within their jurisdiction. Additionally, you can receive messages on your mobile phone to keep you informed of the status of your request at all times.

Step 6. Go to the Notary to finalize the creation of your company.

Once you receive the DUE, you must attend the scheduled appointment with the Notary, providing the certificate of share capital payment and the negative certification of the corporate name. You can check the applicable fees in Royal Decree 1426/1989, of November 17, which approves the Notary Fees Schedule.
On the other hand, you can access the standard bylaws models in Royal Decree 421/2015 and the standardized public deed of limited liability companies in Order JUS/1840/2015.

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Need help?

Contact us for any question or suggestion

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Frequently asked questions

Entrepreneurship Service Points (PAEs) are electronic or in-person one-stop shops where procedures for the initiation, exercise, and cessation of business activities can be carried out. PAEs are responsible for facilitating the creation of new businesses, the effective start of their activities, and their development by providing services such as information, document processing, advice, training, and support for business financing.

The PAE electronic website,, offers all users a search engine for the entire network of Entrepreneurship Service Points (Entrepreneurship Service Points Locator).

The Directorate-General for Industry and SMEs provides updated information on aid and incentives programs for business creation called by public administrations and related bodies through its website

The capitalization of unemployment benefits or lump-sum payment is another well-known measure among aids and subsidies for entrepreneurs. Capitalizing unemployment benefits involves receiving the unemployment benefits to which you are entitled in a single payment, with the aim of starting a business. The requirements to be met are as follows:

  • Be a beneficiary of contributory unemployment benefits.
  • Not have received the lump-sum payment in the previous four years.
  • Initiate the activity within a maximum period of one month from the concession.
  • If the dismissal giving rise to the unemployment benefits has been contested before the Labor Jurisdiction, the capitalization application must be after the resolution of the procedure.
  • If it involves joining a cooperative, and the bylaws of the cooperative stipulate that members must undergo a trial period, this trial period must have been completed.

Not at the moment. Currently, the procedure must be initiated either at a PAE or from the VIRTUAL PAE, from where the DUE will be sent to the notary. Check the Entrepreneurship Service Points (PAE) Locator on the website.

The DUE (Electronic Single Document) is an electronic document that gathers all the necessary information for the constitution and start-up of a company, as well as for its cessation. This document replaces multiple forms required by Organizations and Administrations involved in the process of creating and ceasing companies.

Through this document and using the CIRCE system, the following types of companies can be created:

  • Sole trader (Autonomous)
  • Community of Property
  • Civil Society
  • Limited Liability Company (SRL)

They must obtain the Foreign Citizen Identification Number (NIE) and register with the Foreigners Registry. More information.

Once the NIE is obtained, they can carry out the registration of the activity with the Tax Agency and in the Autonomous Regime of Social Security. They can also use electronic processing to create their company through CIRCE via the Internet.

There is no legal impediment, unless they have signed an exclusivity clause with the company they work for or are subject to incompatibilities required for personnel in the service of Public Administrations.

Regarding Social Security, they must contribute to RETA for their self-employed work and to the general regime for work as an employee. This is a case of multiple activities.

In the case of SRLs, the share capital must be fully paid from its origin, that is, at the time of going to the notary; both in terms of the contribution in the constitution and any subsequent increases in share capital.

In the case of Anonymous Societies, the share capital must be fully subscribed, but not necessarily fully paid; it is sufficient to initially pay 25% of it and the remainder as agreed in the Articles of Association (maximum 5 years for non-monetary contributions). 

It's a mandatory municipal license for a store, warehouse, or office to engage in commercial, industrial, or service activities. It's a document that verifies compliance with the conditions of habitability and use for that particular activity.

The business license or operating permit is granted to the owner of a business for the conduct of a specific activity. It must be renewed whenever there is a change in the activity conducted in the premises, modifications to the premises, or a change in business ownership, such as in the case of a transfer.

The only exempt activities are those of a professional, artisanal, or artistic nature carried out at home, provided there is no sale or direct public interaction and there is no disturbance to neighbors.

A legal representative is an individual who acts on behalf of another, whether it's a natural person or a legal entity. 

Legal representation is usually granted by a public deed. It allows the legal representative to take over the business, obligations, and rights of the represented party; they can manage and dispose of them as agreed upon when the representation was established.

The administration and representation of a company are carried out by the Administrative Body of the company, according to the structure defined in its bylaws.

The Law of Capital Companies allows for the administration and representation of companies to be entrusted to any of the following bodies:

  • A Sole Administrator, who will exercise the power of representation for the company.
  • Several Joint Administrators, who can act interchangeably on behalf of the company for both management tasks and representation in or out of court.
  • Several Joint and Several Administrators, who must act jointly by mutual agreement, although to represent the company, the action of at least two of them will be sufficient, in accordance with what has been established in the bylaws.
  • A Board of Directors, which will collectively exercise the representation of the company, unless the bylaws assign the power of representation to one or more directors specifically, either individually or jointly.

  • Responsibility of promoters: It can be limited to the contributed capital (e.g., anonymous societies, limited liability companies, etc.) or unlimited, affecting both business and personal assets (e.g., individual entrepreneur).
  • Number of partners: The choice of legal form may vary depending on whether there is one or more promoters.
  • Contributed social capital: Some types of companies require a minimum capital.
  • Tax Aspects: Depending on the chosen type, taxation will be either by personal income tax or corporate tax.
  • Type of activity: This needs to be considered for cases where there is special applicable regulation.
  • The Directorate General of Industry and SMEs provides a guided environment for choosing the legal form and offers all the necessary information for company creation.

Both processes are independent and mutually exclusive. Acts or steps from one cannot be integrated into the other.

The prohibitions for being an Administrator in a capital company are listed in Article 213 of the Capital Companies Law:

"Cannot be administrators: minors not emancipated, those judicially incapacitated, persons disqualified in accordance with the Insolvency Law until the period of disqualification set in the qualification judgment of the competition has concluded, and those convicted of crimes against freedom, against property or against the socio-economic order, against collective security, against the Administration of Justice, or for any kind of falsehood, as well as those who, by reason of their position, cannot engage in trade."

The request is made to the Central Mercantile Registry (application for the business name via telematics). The current cost of the negative certification of the company name is 18.19 euros. 

Some criteria to consider when requesting a business name include:

  • Anonymous and Limited Companies: They can have a subjective name or business name, or an objective name.
  • Collective or Simple Limited Partnerships: Must have a subjective name or business name, where the names and surnames, or only one of the surnames, of all collective partners, some of them, or just one must necessarily be included. In the latter two cases, the expression "y compañía" or its abbreviation "y cía" must be added. The subjective name may include an expression related to an activity included in the social object.
  • Objective name: It can refer to one or several economic activities or be a fantasy name.
  • It is not allowed to adopt an objective name that refers to an activity not included in the social object.
  • The business name cannot include, in whole or in part, the name or pseudonym of a natural or legal person without their authorization or consent.
  • The business name must be followed by the legal form or terms that, by legal imperative, according to the special legislation of inscribable companies or entities, must appear following it. For example, "FIM" for "Fondo de Inversión Mobiliaria" (Investment Furniture Fund). These terms lack differentiating virtuality.
  • It is not allowed to add the abbreviation or anagram of the business name to the denominative expression.
  • When a name is already in another language, it is understood that there is identity between them.
  • Societies or entities with a name identical to an existing one cannot be registered in the Mercantile Registry. Identity is understood not only in the case of total and absolute coincidence between names but also when one of the following circumstances occurs:
    • The use of the same words in a different order, gender, or number.
    • The use of different words that have the same expression or noticeable phonetic similarity.
    • The use of the same words with the addition or suppression of generic or accessory terms or expressions.
  • Alternatively, in the case of Limited Companies, a business name can be obtained from the Stock Exchange of Social Names of the Mercantile Registry.

The municipal government of the city where the business activity will take place is responsible for issuing the license.

Notably, the Sustainable Economy Law of March 4, 2011, removed the mandatory requirement for the opening license for the majority of service and commercial activities. Instead, a responsible declaration can be submitted, eliminating the need for a license. A "responsible declaration" is a document signed by the business owner or representative, declaring, under their responsibility, that an urban action complies with the urban requirements set by the current regulations for its establishment, modification, or development. It confirms the possession of the necessary documentation and the commitment to compliance throughout the duration of the activity.

Both processes are independent and mutually exclusive. Acts or steps from one cannot be integrated into the other.