{"id":3001,"date":"2024-07-26T15:29:05","date_gmt":"2024-07-26T15:29:05","guid":{"rendered":"https:\/\/gpasoc.com\/?p=3001"},"modified":"2024-07-26T15:41:54","modified_gmt":"2024-07-26T15:41:54","slug":"incorporation-of-companies-formalities-and-documentation","status":"publish","type":"post","link":"https:\/\/gpasoc.com\/en\/incorporation-of-companies-formalities-and-documentation\/","title":{"rendered":"Incorporation of Companies: Formalities and Documentation"},"content":{"rendered":"\n
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When starting a new business or commercial project, it is natural for an entrepreneur to focus on the development of the idea. However, it is crucial from the outset to consider the legal structure of the business, the first fundamental step being the incorporation of a company.<\/p>\n\n\n\n

Benefits of Incorporation<\/strong> Companies offer the advantage of limiting liability to the initial capital invested in the business, thus protecting the personal assets of the partner in the event of insolvency. In contrast to this, an individual entrepreneur (self-employed) is unlimitedly liable with his personal assets for the debts of his economic activity.<\/p>\n\n\n\n

Common types of companies<\/strong><\/h2>\n\n\n\n

The most common company forms for economic activity in Spain are the Sociedad de Responsabilidad Limitada (S.L.) and the Sociedad An\u00f3nima (S.A.). The former is more common, with more than one million S.L. registered compared to around one hundred thousand S.A. There are also the sociedad colectiva and the sociedad comanditaria por acciones, but these are less common and will not be dealt with in this article.<\/p>\n\n\n\n

Steps to Incorporate a Company<\/strong><\/h3>\n\n\n\n

Although incorporating a company is not excessively complicated, professional advice is advisable due to the particularities of each case. The essential steps for incorporation are described below:
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1. Application for Negative Certificate of Name<\/strong> The first step consists of reserving the name of the company. One of the founding partners must apply for a Negative Certificate from the Central Commercial Register to ensure that the chosen name is unique. This certificate is valid for six months, and if the company is not incorporated within that period, a new one must be applied for.<\/p>\n\n\n\n

2. Opening a Bank Account<\/strong> A bank account must then be opened in the name of the company and the minimum capital required by law (3,000 euros for Limited Companies and 60,000 euros for Public Limited Companies) must be deposited. The bank will issue a certificate of this deposit, which is necessary for the public deed of incorporation.<\/p>\n\n\n\n

3. Drawing up the Articles of Association<\/strong> The Articles of Association are the rules that will govern the internal functioning of the company and must be included in the deed of incorporation. They must contain, as a minimum<\/p>\n\n\n\n