THEME 56. THE PROCESS OF CREATING A SMALL BUSINESS.

LOCATION OF THE COMPANY. MARKET STUDY AND ANALYSIS

FROM THE SECTOR. CHOICE OF LEGAL FORM. FEASIBILITY PLAN
ECONOMIC. LEGAL PROCEDURES FOR THE CONSTITUTION AND IMPLEMENTATION
MARCH. SUBSIDIES.

THE PROCESS OF CREATING A SMALL BUSINESS.

The main motivations to start the 'business adventure' can

to be
Entrepreneurial spirit.
Personal satisfaction in the creation of your own business.
Self-employment.

Among the necessary requirements for starting a business, there are

highlight
Sufficient economic resources.
Technical or professional capacity.
Ability to take on responsibility and risks.

The initial idea should lead to the development of a business plan or company plan.

This plan is for:

Conduct a self-diagnosis of the strengths and weaknesses of the future
business.
Facilitate a global vision of the project and, at the same time, a perspective.
detailed account of the most significant aspects.
Present the project to organizations or individuals with whom you
I need to get in touch.

This plan must take into account five fundamental aspects:

Define the objective: Describe the product or service and the global market
into which it is desired to introduce.
Analysis of commercial activity: Potential customers, prices and methods
of advertising and sales techniques.
Analysis of the technical system: Describe the productive process, and the
necessary material and human resources.
Analysis of the financial and economic structure: Specify how they are going
to obtain the necessary financial resources and perform the calculations of
the possible benefits.
Establish the legal form that will be adopted.

This plan must be contained in a document, in which care must be taken

presentation and the form:
The document must be self-explanatory.
The presentation should be simple and clear.
It must include an index.

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1.1. THE INITIAL IDEA.

Every business project arises around an initial idea. This idea must
to represent an "innovation" in their field of activity.

Business opportunities almost always arise from a systematic search.

more than just a 'happy' idea.

The analysis of social and economic indicators allows to predict the

trend that will follow the consumption patterns.

There are what have been called 'sources of opportunities':

The unexpected.
The need for a process.
Changes in the structure of the industry or the market.
The new knowledge.

In the most developed societies, the greatest opportunities are anticipated.

business in those activities connected with services and new technologies.

1.2. FEASIBILITY OF THE IDEA.

Once an idea is selected, the main factors must be taken into account.
determinants for it to be put into practice:
The necessary knowledge and ease of access to information,
as well as the necessary support for the development of the idea.
The study of the possibilities of acceptance of the product or service in the
market.
The available economic and financial resources

It can be stated that the feasibility study has four variants:

Commercial viability.
Technical feasibility.
Economic feasibility.
Legal viability.

2. LOCATION OF THE COMPANY.

The future company needs to have suitable premises for its activity.
There are different ways to obtain them: buy them, rent them, lease them, in
transfer, assigned by some individual, company, agency or institution, etc.

If you are going to buy, you need to keep in mind that the initial investment is high and if you
Renting this will mean a fixed monthly expense for the company.

It is necessary to distinguish between the company's address and the location of its
facilities.

It should also be considered whether all the necessary space needs to be together or can
to locate oneself in different places.

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 The main factors that influence location are:
Raw materials.
The necessary energy.
The labor force.
The consumer market.
The land.
The acquisition of capital.
The tax advantages.
The social environment.
Agglomeration economies.
The supply of components and availability of services.
Waste elimination.

3. MARKET STUDY AND SECTOR ANALYSIS.

The goal of this section is to demonstrate the commercial viability of the project.
To do this, it is necessary to determine the geographical scope, quantify the potential market,
group the market into homogeneous groups or segments with the same customer profile,
divide the segments into subgroups called niches, select the niches in which
We are interested in positioning ourselves and calculating your potential demand and sales. An analysis will be conducted.
the motivations and buying behaviors of customers and their needs. For
Lastly, a reflection on future evolution will be included, as far as possible.
what is expected from the market.

3.1. Market Analysis

In this section, we will detail the characteristics of the market (legal aspects,
technical, logistical, marketing, production), their structure, barriers of
entry, geographical areas (countries, regions, islands, municipalities, neighborhoods), size (number
of total clients, degree of concentration or dispersion of those clients in the region
as well as the forecasts for evolution (trends in demand growth).

Market Segments of the Company

Market Segments: Consumer Profile
Segmenting means dividing the market into homogeneous and differentiated groups.
since each segment has its own consumer profile that describes its
specific characteristics.
In this section, we will identify the market segments, as well as their
main characteristics.
To segment the market, we can use one of the following criteria:
Geographic. Market division by geographical location of
the clients: by streets, neighborhoods, areas, municipalities, populations, islands,
regions, countries, continents, etc.
Demographic. Market division by characteristics
demográficas de los clientes: edad, sexo, estado civil, número de hijos,
etc.
Socioeconomic. Market segmentation by characteristics
socioeconomic characteristics of clients: social class, level of education, purchasing power
purchasing, etc.

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 Psychographic. Market segmentation by characteristics
psychographics of customers, their behaviors, habits, styles of
life, etc.

Once the different segments of our market have been identified, we can
analyze their characteristics, behaviors, and consumption habits. The objective
Yes, ultimately, identifying the particular needs of each group. Each segment
it can also be divided into smaller subgroups called market niches.

Next, we will select the most profitable market segments and

viable based on the following criteria:
The sales performance (the difference between costs and the
revenues generated by a certain segment.
The sales volume that can be generated (measured by the number
of potential clients that each segment has).
The growth potential of each market segment.

3.2. Target Audience

Customer Needs
The objective of this section is to understand what the customers' needs are.
to later analyze what motivates them in their consumption and be able to offer it to them. In this
meaning, it will be necessary to identify for each chosen segment or market niche the
general and specific needs that the product or service aims to satisfy.

In addition, we must answer the following questions; what need

solves?, why, at what moment and where does it meet that need?, how does it
Does it satisfy the need? And what needs does the offered product not cover?

Types of Consumers
Depending on the time that elapses between accepting the product or technology
what we offer and the customer in buying it, we encounter different types of
consumers:
Those who adopt new ideas before the rest of the people in their
social environment. They are the pioneers, the ones who dare to try new things.
They usually represent between 2% and 3% of their segment.
Those who take the initiative to try new products but are more
more cautious than the innovators. They are usually the opinion leaders of their
environment. They represent between 12% and 13%.
Group that adopts new ideas but after having matured them, although
before the average. They are not usually opinion leaders, and they come to represent a
34% of consumers.
Skeptics adopt innovation only after the majority have.
they have done. They also represent 34% of consumers.
Group resistant to change, traditional, that adopt innovation only
when imposed by tradition itself. They represent 16%
approximately.

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Customer Purchase Motivations
We must discuss what the motivations are that affect the different ones.
customer profiles. That is to say, the why of their purchases, how and when they make their decisions.
decisions to acquire a product, and where and how much they buy. In this sense, some
motivations are; the price, fashion, ostentation, emulation, comfort, the
safety, affection for people, the attractiveness of things, etc.

Customer Purchase Process

Depending on the product price in relation to the client's income the
the decision-making process will be immediate or impulsive, or will require more
time. Additionally, in this process there may be other people who recommend or
influence the client's decision-making.

Customer Behavior and Conduct in Purchasing

Normally, when the product/service is new to the customer, they
it will cover all stages of the purchasing process. This will likely have an impact on the
maturation period of the sale.

Attributes in the Purchase

Finally, we think it is essential to determine why the buyer purchases the
customer, that is to say, to determine the criteria that condition the purchasing decisions of the
target audience. These criteria determine customers' preferences among the
different products or services and constitute the starting point of trade policy
what we aim to develop to reach the market.

Potential Demand and Trends

Potential Demand
This section will quantify the total market volume as well as the
market attractiveness or potential demand for the company. In this sense, it
will determine the potential demand for each niche or market segment that
We hope. There are many techniques to try to foresee potential market demand.
but they mainly depend on the activity and the specific type of business.
If the product or service is not new, we can obtain data from the
Administrations and calculate the market size in terms of units sold and
billing volume.
If the product represents an innovation or is novel at a global level, we can
determine the potential market based on similar products or
substitutes. Furthermore, we can extrapolate the data if it is marketed the
product in other regions, countries or markets.
Finally, we must evaluate the total market appeal for our company.
that is, the potential demand in units of product and service, the price and the figure of
businesses.
Demand Trends
In this section, it is necessary to analyze the trends for each segment of
market and for each geographical area. Trends can arise from changes in
economic, technological or fashion cycles for example. The goal is to position
the products and services of the company in a differentiated manner and adapted to the
new demands from customers. To carry out the analysis of the trends of the
In demand, we must pay attention to the commercial actions of the leader or main competitor.
Seasonality of Demand

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 In this section, we must determine the possible times of the year for low sales.
to decide how to increase them.
In addition, we must consult experts, analyze, and take into account the
legal requirements to sell in that market, as well as distribution channels.

3.3. Competition Analysis

Direct Competition
In this section, we will identify what the direct competition or companies are that
they market the mime or similar product, it will be analyzed how it works and how it sells, if
Is there any important direct competitor to consider, etc., and what are the points?
strengths and weaknesses of the company and the competition.
In addition, concrete information about the competitors must be obtained.
Name.
Product lines, differentiation elements.
Key success factors.
Market share of different competitors.
Global and segment objectives.
Sales volume in units and in euros.
Cost structure: analysis of the costs incurred in your
value chain and its production process.
Financing methods and solvency.
Innovation capacity: observing the evolution of capacity
innovative and the changes in the ways of doing things.
Technology level: technological level, patents, licenses, processes
secrets, quality systems, equipment, etc.
Degree of differentiation of its products compared to ours
company.
If they have economies of scale: that is to say, the operational advantages associated
to the large size of the company.
Communication strategy: transmitted image, perceived image and
reputation in the market.
Brand loyalty: consumer preferences regarding the different
market alternatives.

Concrete information about competitors can be obtained through

from the Chamberlists
of companieshigh rates in the same activity by areas, or
Well in the Insular Mercantile Registry, data from balance sheets of competing companies.

Indirect Competition and Substitute Products

Substitute products are those offered by other companies in the
market that performs a similar function to ours for the same group of
consumers that the company will target. They pose a constant threat that can
be accentuated by changes in the environment, such as variations in price or quality.
Substitutable products pose a threat. Therefore, it is necessary to keep an eye on them.
closely the evolution of these products and the improvements made on them.
Furthermore, the risk of our clients changing suppliers is quite high.
high if they find any additional advantage in the substitute product since its
the propensity for change is quite high. In addition, it is necessary to consider whether the
substitute producers maintain a very aggressive commercial policy which can

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motivate some of our clients to start buying from them
competitors.

Potential Competition and Barriers to Entry

The difficulty or ease of entry for new competitors in the market will
to be conditioned by a series of intrinsic factors of the sector, by barriers
raised by the companies themselves or by the combined effect of the actions
individuals who operate in the sector.
Some of the variables that will help us establish what the barriers are
entry into the sector includes economies of scale, product differentiation,
identification of specific brands by customers, switching costs, requirements
of capital, the learning curve, etc.

3.4. Analysis of Suppliers

Introduction
Due to the importance that costs can represent for some businesses
of purchasing products from suppliers or subcontracting regarding the selling price
from the company, summarize the company's policy on the same as well as the aspects
most relevant to the business.

Identification and Classification of Suppliers

First of all, we need to make a list of suppliers detailing the
products offered, % of the market controlled, prices, qualities, conditions of
payment and delivery times.
Secondly, they should be classified in order of importance that will come.
given the products they supply if they are critical to the process, if they exist
alternative products, or if the expected volume of their supplies is very significant
in relation to the total.

Selection and Evaluation Criteria for Suppliers

In this section, we will select the most important suppliers with the
goal of establishing a preferential relationship with them. Such suppliers must
meet the following requirements: competitive prices, specialized in the
products that deliver, reliable in quality and delivery times, better technical service and
infrastructures, proximity and closeness to the company.
In addition, we must periodically evaluate suppliers to understand their
degree of compliance with the quality levels required.

Purchasing Policy
A procurement policy must be established that includes the criteria and aspects.
related to the evaluation and selection of suppliers, quality requirements
necessary, delivery times, payment policy (cash or credit, and in this case establish the
payment term), etc.

Raw Materials Warehouses

This section will discuss the facilities and resources available.
for the storage of raw materials and purchases.

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Payment Terms to Suppliers
It involves breaking down 100% of purchases from suppliers based on
number of days they grant us as credit; cash, 30 days, 60 days, ...

3.5. Risks and Key Success Factors

Key Success Factors of the Environment

Once the creation of the company is completed, with all the paperwork and requirements,
the entrepreneur faces the challenge of surviving in the market and this is a job
what to do each day. At this stage, the Business Plan is very useful, it will show your
usefulness as a planning tool and above all for work.
In this situation, knowing which factors affect both failure
how the success of a business project helps the entrepreneur, granting him a certain
leeway. For reference, the following could be highlighted:
Regulatory barriers: the creation of a company is a process of some
complexity, which is subject to a set of requirements, involves dedicating
time and face direct and indirect costs.
Skills and training: deficiencies in training and the absence
of motivation. Lack of capability prevents business opportunities
potential lead to the creation of new companies.
Competition policy: tacit agreements between companies
established.
Bankruptcy legislation: good bankruptcy legislation is essential
to ensure that if necessary, companies can exit the market,
allowing for an efficient reassignment of resources, and at the same time,
all parties recover the maximum of their investment.
Tax and labor barriers: the existence of high tax rates and
High social charges reduce the incentive to create companies.
Payment delays: the financial vulnerability of companies means that
the delay in payment has a strong impact on your growth.
Financing: difficulty accessing the capital market.
Intellectual property rights: insufficient protection of the
intellectual property rights, companies do not invest in research
because they fear that their results will end up in the hands of the competition.

Key Success Factors of the Sector

In addition, we need to analyze the sector factors that depend on the
characteristics and nature of the activities carried out in it. This information
we can extract it through interviews with people related to the sector of
activity, professionals, suppliers, distributors, potential clients, etc.
describing the possible applications of the product as well as the reasons that
They will encourage customers to buy it and what is the size of our market.
Reflect, what matters is to compete in markets where the company has a
sustainable competitive advantage in the long term.
Some examples such as:
price or the cost structure of the organization
just market moment
quality
design or the degree of innovation
dimensions

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 technological novelty or efficiency in the execution of activities
productive
environmental respect
commercial aggressiveness or the ability to market
duration
brand image.

3.6. SWOT Analysis

Your goal is to summarize the evaluation in a graphic or summary table.
the strengths and weaknesses of the company (competition or ability to generate and
sustain their competitive advantages) with external threats and opportunities, in
coherence with the logic that the strategy must achieve an adequate alignment between its
internal capacity and its position.

SWOT (Strengths, Weaknesses, Opportunities, and Threats)

Strengths
The SWOT analysis has gained great importance within management.
company strategy.
Its objective is to summarize in a graph or a summary table the
evaluation of the company's strengths and weaknesses (competitiveness or capability to
generate and sustain your competitive advantages) with threats and opportunities
external, in coherence with the logic that the strategy must achieve an appropriate alignment
between its internal capacity and its external competitive position.
The important thing is to think about what is necessary to seek in order to identify and measure the
strengths and weaknesses
that are gathered in a table.
Internal strengths and weaknesses are important since they can
help us understand our company's competitive position in an environment of
concrete business. Therefore, a first step consists of analyzing the environment
competitive environment surrounding our company. Each company must decide what its
variables (critical success factors -CSF-) appropriate to use according to the markets and
segments in which it competes.
Once the FCEs are defined, a benchmarking process must be carried out.
comparative analysis with the best competing companies. This process can lead us to
even lead to identifying new opportunities.
Finally, a chart is established to outline the possible strategies to be adopted.
This chart is created based on the development of a 2 x 2 matrix that collects
the formulation of these more convenient strategies.
In this SWOT matrix by columns, we will establish the analysis of the environment (1st
Threats
Puntos fuertes
what reflects the possible strategies to be adopted by the company:
1-1 Defensive strategies
1-2 Offensive Strategies
Survival Strategies
2-2 Reorientation Strategies

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SWOT Matrix Threats Opportunities

Strengths Defensive strategies Offensive strategies

Weak Points Survival strategies Reorientation strategies

The practical development of the matrix is completed by analyzing each one in isolation.
quadrant. That is, if the first one is chosen (1-1...Strengths-Threats) it will have
to identify each of the strengths that the company in question has and each
one of the threats it faces from the outside, so that each intersection must be
analyzed to study the consequences and the actions that may arise from that situation
derive. With this information, the future formulation of the
strategy.
1-1 Defensive strategies: the company is prepared to face the
threats.
Offensive strategies: it is the position in which every company would like to be.
It must adopt growth strategies...
2-1 Survival Strategies: the company faces external threats without
the internal strengths necessary to fight against competition.
2-2 Reorientation strategies: the company is presented with opportunities that
can take advantage but nevertheless lacks the proper preparation. The
The company must establish a program of specific actions and reorient its
previous strategies.

Opportunities in the Sector

Analyze the project's opportunities. Some examples;
enter new markets or segments,
attend to additional groups of clients,
expansion of the product portfolio to meet new needs of the
clients,
rapid market growth
diversification of related products,
elimination of trade barriers in attractive foreign markets.

Sector Threats
Analyze the project threats. Some examples;
entry of new competitors with lower costs,
increase in sales of substitute products,
slow market growth, change in the needs and tastes of the
consumers
increase in costly regulatory barriers and requirements,
increasing bargaining power of customers and/or suppliers.

Strong Points of the Company

Analyze the company's strengths. Some examples;
capabilities in key activities, adequate financial resources,
superior technological skills and resources
property of the main technology,
cost advantages,

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 important R&D program,
good image among consumers
market leader,
managerial capacity.

Weak Points of the Company

Analyze the weaknesses of the company. Some examples;
there is no clear strategic direction,
inability to finance the necessary changes in the strategy,
delay in R&D,
profitability below average,
weak image in the market, limited product portfolio,
obsolete facilities,
weak distribution network or inefficient systems - excess of problems
internal operations.

4. CHOICE OF LEGAL FORM.

The choice of legal form is undoubtedly one of the first steps to take within the
process of creating a company. Some entrepreneurs decide on a form
legal during the first years of activity, with the aim of reducing labor costs
and processing, which sometimes evolves into others later.

4.1. Factors that determine the choice of the legal form of the company.

In summary, we can point out the following:

. Type of activity to be carried out.Both the activity to be carried out and the sector can
to require the adoption of certain legal forms: banking, insurance, travel agencies and
others require by law to establish a commercial company.
. Number of people participating in the business project.It will depend if
it deals with individual enterprises or companies, and there are even certain forms
legal entities that require a minimum number of partners (labor societies and cooperatives).
. Responsibility of the promoters.For the choice of the legal form, one
you must choose between limiting liability to the capital contributed to the company or
to face the risk of holding both personal and social assets accountable.
. Relationships that partners maintain with each other.There is a possibility of
restrict the entry of new members or simply assess the contribution
economic.
. Economic needs of the project.They influence to the extent that it is necessary
a minimum share capital for certain types of companies.
. Tax aspects of the company.The type of tax imposition must be analyzed.
the activities carried out by that company and how they impact
Tax-wise, in the income tax of individuals, the profits obtained.

4.2. Characteristics of the most common legal forms

In this section you will find the main features, as well as their advantages.
and disadvantages of the possible legal forms that a company can take,
classified according to the person (natural or legal) who will hold the ownership
own to the company.

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 Another form of classification, which we will not develop in this section, is
considering its individual or legal nature. That is, within the legal forms
we would encompass the sole proprietorship (or self-employed), the Company
Limited Sole Proprietorship and Sole Anonymous Company. On the other hand, within the
collective legal forms we find the Community of Goods and the Societies
Commercial entities, such as Limited Liability Company, Public Limited Company, Cooperative, etc.
However, it is only a classification system, so what is interesting is
know and differentiate the various legal forms that you will find below.

4.2.1. Sole trader or self-employed

Definition: A natural person who acts on their own behalf and through a business.
a commercial, industrial or professional activity.

Main features:
The legal personality of the company is the same as that of its owner,
personally responding for all obligations contracted by the company.
It has no specific legal regulation, being subject to its activity.
business to the general provisions of the Commercial Code in commercial matters,
and the provisions of the Civil Code regarding rights and obligations.
There is no minimum capital requirement to establish the company, mingling
the commercial assets with the civil assets of the promoter.
It is one of the most common legal forms of business creation;
it is generally associated with the self-employed worker, although this is only part of it
essential for your administrative processing as an entrepreneur.

Advantages:
It is an ideal business form for the operation of very
reduced size (microenterprises and small commerce).
It is the legal form that requires the least amount of management and paperwork.
constitution and implementation (simplicity in its processing).
Its implementation is extremely cost-effective, as it does not require
distinct legal personality from that of the entrepreneur himself.
In addition to simplifying their periodic business obligations as much as possible.
No minimum initial share capital is required to be established as
company.

Disadvantages:
The entrepreneur responds with their personal assets to the economic debts.
generated in business activity (personal and unlimited liability).
If the businessman is married, the risks and fortunes of the business may affect the
property of the other spouse.
If the profit volume is high, the company will be subject to rates
very high taxes, due to the progressivity of personal income tax.

Applicable regulation: The individual business owner as a natural person does not have a regulation.
specific legal, being subject in its business activity to the provisions of
Commercial Code in commercial matters, and to the provisions of the Civil Code in
subject of rights and obligations.

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Social Security regime to be applied: The sole proprietor individual.
will be subject to the special regime for self-employed workers or the special regime that
respond, depending on the type of activity you carry out when you do it
personal and direct form, in which case you must register if you are not already affiliated with
prioritization and registering in the corresponding special regime.

Administrative processing:
1. State Agency for Tax Administration(www.aeat.es). Registration in the
census of individual entrepreneurs, professionals, and other tax obligations (model
037. abbreviated model).
2. General Treasury of Social Security. Application for registration in the Regime
Special for self-employed workers or freelancers, or in the Special Regime.
as it corresponds according to the type of economic activity you perform. (model TA.521).
3. In the case of hiring salaried workers.
4. General Treasury of the Social Security. Registration of the Employer in the
Social Security and Opening of Main Contribution Account (form TA 6). Registration of
worker in question, in the Social Security (model TA 2).
5. Councils of Economy, Finance, and Employment. Communication of opening of the
work center where we are going to develop our economic activity.
Filling out the Visitor's Book before the Labor Inspection.
6. Employment offices (formerly INEM). Formalization and Registration of Contracts
Work (standard model according to the chosen contractual modality).
7. Urban planning office of the Honorable City Council of the municipality that
Respond according to the activity performed. Application for Municipal Work License.
Application for municipal opening license for establishment and activities.
installations.

4.2.2.- Community of goods

Definition: It is a private contract by which the ownership of a thing or a right

belongs undivided to several persons, forming a group or society
irregular.

Main characteristics: It is an atypical way to form a company, as

lacks its own legal personality. Since it does not conform to any specific form,
Well, it has its origin in a shared property or co-ownership of individuals.
who participate in the benefits and burdens of it. It is worth noting:
The Community of Goods does not have its own legal personality; therefore,
the community members will respond indefinitely to third parties for the actions carried out
the Community.
No minimum capital contribution is required for its incorporation, allowing for
contribute the same goods, work, and money.

Applicable regulations: The Community of Goods is governed by Title III of Book II

of the Civil Code, in its articles 392 to 406. In commercial matters, it is governed by the Code
of Commerce.

Advantages:

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 It is a legal form suitable for the development of business activities.
of low economic level, in which personal participation is considered important
of the commoners.
It does not involve excessive administrative procedures for its establishment, nor does it require
minimum initial social capital.
The burden and risk of starting a business does not fall on a single person.

Disadvantages:
It is a legal form in which each member is responsible with their assets for
Personal, solidarity, and unlimited form of the debts generated by the business.
Since this legal figure is created by Civil Law and has little
legal regulation, its functioning is complicated in the business world, being
subject to the foundational agreement of the commoners.
Being subject to income tax under the system of attribution of income to each
Community member, if business profits are high, the tax burden is very high.
due to the progressiveness of said tax.

Administrative processing:
Drafting of a foundational private agreement (private contract between the
Members who will be part of the Community of Goods, according to the stipulated
Articles 392 to 406 of the Civil Code.
State Agency for Tax Administration. (model 036). Registration in the
census of Entrepreneurs, professionals and other tax obligors. A registration for oneself
Community of Goods, and as many tax registrations as there are community members in the Company.
Self-assessment of the tax on transfers of property and acts
documented legal documents (model 600), to the corresponding Ministry of Finance
to the province where the registered office of the community appears. It will be settled
1% of the share capital that appears in the founding agreement of the community of
goods.
General Treasury of Social Security:
a. Application for registration in the special regime for self-employed workers
own or self-employed (any partner who is going to carry out the economic activity
belonging to the community of goods must be subject to the special regime for workers
self-employed or the special regime that corresponds depending on the type of activity
that it be carried out.
b. Registration of the partnership in Social Security for
opening of main quotation account (if you will have salaried workers at your
cargo).

4.2.3.- Civil Society

Concept: The Civil Society is a contract by which two or more people come together
common capital, with the purpose of sharing the profits among themselves.

Main characteristics:
The liability of the partners to third parties is unlimited.
There is no minimum legal capital required for its constitution; the capital being
formed by the contributions of the partners, both in money and in goods or industry.
It can have its own legal personality or not, depending on whether its
foundational agreements are public or private.

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 It is an irregular and imperfect society.

4.2.4.- Partnership

Concept: The Collective Society is a Working Society; all partners are

natural managers of Society.

Advantages:
A minimum of two partners is required, with a maximum of 50. There is no minimum.
legally enforceable in terms of share capital.
The partnership shall operate under the name of all the partners,
either of them or just one, needing to be added (in these last two cases) to the name
or names that express the words 'and Company'.
Before starting its operations, the Collective Society must make
to record its constitution, agreements, and conditions in a public notarial deed that,
subsequently, it will be presented at the Commercial Registry for its registration (registration
constitutive).
The responsibility of the partners regarding possible debts of the company is
personal, supportive and unlimited.

4.2.5. Limited Partnership

Concept: The Simple Commandite Society is one in which there are collective partners.
(who contribute labor and are liable with all their assets for social management) and partners
silent partners (who contribute capital and respond only with their contribution).
It is regulated in Articles 145 to 150 of the Commercial Code. It does not exist.
minimum legally required for the share capital.
The Partnership will operate under the name of all the general partners,
of one of them or of only one, must be added (in these last two cases), to the
name or names that express the words 'and Company', and in all of them
Limited Partnership
It is required regarding its constitution, the elevation to a public deed of its
founding agreements and their subsequent registration in the Mercantile Registry.
The Limited Partnership by Shares, regulated in Articles 151 to 169 of
C. Commerce requires at least a minimum of three partners: at least one will be a partner.
collective and will personally respond for the social debts; the rest of the partners may
be a limited partner.

4.2.6. Limited Liability Company

Definition: It is a commercial company in which the capital will be

divided into shareholdings, will be comprised of the contributions of all
partners, who will not personally respond for the company's debts.

Applicable regulation: It is governed by Law 2/1995, of March 23,

limited liability companies.

Main characteristics: The share capital, divided into shares (not

actions), it must not be less than 3,005.06 euros; and from its origin, it must be
completely disbursed.

15
 Only patrimonial assets or rights can be the subject of contribution.
subject to economic valuation. In no case may they be the subject of contribution.
the work or the services.
The partners shall not exceed 50 and shall not be personally liable for the
social debts. Likewise, and as a novelty of Law 2/1995, they may be established
Single-member Limited Liability Companies.
The name of the Company must necessarily include the expression
Limited Liability Company, Limited Company or its abbreviations 'L.L.C.'
the "S.L.".
The Society will be constituted by public deed, which must be
subsequently registered in the Commercial Register, acquiring from that moment the
full legal personality.
It is the commercial company par excellence, most commonly chosen nowadays.
as a legal form to establish a company.

Advantages:
Its biggest advantage is that the liability of all partners, in the face of possible
debts of the company are limited, affecting only the monetary contributions that
they have carried out in it, but not on their personal assets that remain
completely outside of commercial activity.
It is considered that the corporate legal form is particularly advantageous.
from a tax perspective when the annual earnings of the company exceed the
48,000 euros.
The accounting management of corporate legal forms allows for
greater tax deductions (amortizations, depreciations, wages and salaries of the
own partners and shareholders, etc.).

Disadvantages:
There is a legal limitation on the free transfer of social shares.
of society; therefore, we are facing closed companies in which the
The inclusion of a new partner requires the consent of the founding partners.
When taxed by the corporate income tax whose tax rate is fixed, in the
in the case of annual earnings below €48,000, the tax burden that for the
the same would have to be supported by the company would be greater than in the case of legal forms
non-corporate.
If one does not hold a majority of shares, the decision-making power would be
limited, having to adhere to what the majority of partners decide.

Procedures:
1. Request a certificate from the Central Commercial Registry stating that none exists.
a company with the same name has been registered.
2. Obtaining the Capital Contribution Certificate.
3. Public Deed before Notary of the incorporation of the Company.
High tax and obtaining the C.I.F.
5. Self-assessment of the Tax on Property Transfers and Legal Acts
Documented.
6. Registration of the Company in the Commercial Register.

16
Social Security Regime:
a. The administrators of the limited liability company with a shareholding equal or
those who are superior to 50% are obliged to register in the special regime of
Self-employed. In the event of holding a lower percentage and not having...
Management or administration functions could be subject to the assimilated general regime.
Partners with a shareholding greater than 50% are required to notify each other.
registered in the self-employed regime. If they hold a lower capital and have powers
of management and decision in the company, they are also required to register in the
Special regime for self-employed workers. If they do not perform management or leadership functions, and do not
they hold that percentage, they will be classified as capitalist partners; with the
the only exception is that if they carry out a work activity within their own
company, would fall under the General Regime of employees.
being qualified as worker partners.

4.2.7. Corporation

Definition: Commercial company in which the capital will be divided into shares.
it will be integrated by the contributions of the partners, who will not be personally liable for
social debts.

Applicable regulations: It is governed by the Law of July 25, 1989.

Public Limited Companies, whose Consolidated Text was approved by the Royal Decree
Legislative 1564/1989, of December 22.

Applicable characteristics:
It is an essentially capitalist society, in which contributions from the
partners must necessarily engage in actions.
The minimum required share capital is 60,101.21 euros; it cannot be
to constitute a Corporation that does not have a subscribed and paid-in capital
of at least 25%.
There is no limitation on the maximum number of partners, and there may exist
also the Sole Shareholder Company, that is, constituted by a single partner.
The name of the Company must necessarily include the indication
"Public Limited Company" or its abbreviation "PLC".
The Public Limited Company will be established through a notarial public deed, which
must subsequently be registered in the Commercial Registry, thereby acquiring the
full legal personality.

Advantages:
The liability of partners/shareholders is limited to the
economic contributions that they make to society, without having to be accountable to the
social debts with personal assets.
The minimum share capital, according to law, cannot be less than €60,101.21.
the company has a greater initial economic capacity.
The status of partner/shareholder is transferred freely through the sale of
actions.

Disadvantages:
A minimum share capital higher than that of other types of legal forms is required.
corporate.

17
 As it is a suitable legal form for large companies, there is a
greater organic and functional rigidity.
When taxing under the corporate tax with a fixed tax rate, in the
In the case of annual earnings below €48,000, the tax burden that is
the burden that the company would have to bear would be greater than in the case of legal forms
non-corporate.

Procedures:
1. Request a certificate from the Central Commercial Register stating that it does not exist
a company with the same name has been registered.
2. Obtaining the Capital Contribution Certificate.
3. Public Deed before Notary of the incorporation of the Company.
4. High Tax and obtaining the C.I.F.
5. Self-assessment of the Tax on Property Transfers and Legal Acts
Documented.
6. Registration of the Company in the Commercial Registry.

4.2.8. Labor Society

Concept: The Labor Society is a Corporation or a Limited Liability Company

Limited, in which the majority of the share capital (at least 51%) is owned by the
workers who provide paid services in it personally and directly, whose
The employment relationship is full-time and for an indefinite period.
There are two types of partners: workers' partners and capitalist partners.
No partner may own shares or equity interests that represent more than
one third of the share capital, except for public entities.
The liability of the partners to third parties is limited to their contributions.
of those in society.
The society will enjoy legal personality from its registration in the Register.
Commercial, but it must also provide a certificate that proves it has been qualified.
by the Ministry of Labor and Social Affairs or the competent authority of the
Autonomous Community as a Labor Society, appearing registered in the
Workers' Cooperatives Registry.
The name of the Company must include the indication 'Company'
"Labor Anonymous" or "Labor Limited Company", or its abbreviations "S.A.L." or
S.L.L.
In all matters not provided for in the Labor Society, the rules will apply.
corresponding to 28 the Corporations or Limited Liability Companies, according to
the form they display.
Labor Societies are societies that have a series of benefits.
Fiscal entities: upon establishment, they are exempt from paying 99% of the Transfer Tax.
Property and Documented Legal Acts. This benefit also applies
when society requests loans to acquire goods necessary for its activity.

4.2.9. Cooperative Society

Concept: They are Companies that, with variable capital and structure and management
democratic, associate, under a system of free adherence and voluntary withdrawal, people who
they have common socio-economic interests or needs, for whose satisfaction and to
community service develops business activities, attributing the

18
economic results to the partners, once the community funds have been addressed, in
function of the cooperativized activity they perform.
They are personalist, democratic, and limited liability societies.
as for common debts.
They have their own legal personality from the moment they are registered in the
corresponding Cooperative Register of the Ministry of Labor and Social Affairs
the Public Deed of its constitution.
The share capital must be fully subscribed and paid up to a minimum.
25% in the constitution, and the rest as provided in its statutes.
The minimum number of partners must be 5, with no limitations regarding their
maximum number. There are Cooperatives called first degree, which are
made up of natural persons and legal entities; there are also Cooperatives of
according to the higher degree, composed of two or more cooperatives of the same or
different class.
When they are established, they are exempt from paying the Transfer Tax.
Property and Documented Legal Acts. They also have a 95% discount.
in the Economic Activities Tax (IAE).

5. FEASIBILITY ECONOMIC PLAN.

Financial Planning involves making medium-term forecasts and

long term, over a horizon of 3-5 years. Being forecasts for more than a year, it has a
high degree of uncertainty, but nevertheless it is advisable to carry it out to be
better prepared and direct the company more precisely, by marking the directions it should take
to take.
A later control will allow us to analyze through the deviations,
correct the trends.
Financial analysis consists of evaluating the economic-financial situation.
current state of the company and project its future. Ultimately, evaluate the management.
business of the economic unit to predict its future evolution and to be able to take
decisions with the least uncertainty.
With the financial plan, we try to determine the future liquidity of the company.
shaping it into a Treasury framework, which we can draw up in the simplest way possible.
opportune to highlight its components:
As a cash budget (based on the Provisional Accounts of
Results).
From the provisional results. (Initial treasury balance,
collections, payments.

Feasibility study
These are all the studies we conduct on income and expenses, as well as
about the charges and payments of a project, to determine if it can be carried out,
which must be fulfilled to generate positive and sufficient results in accordance
with the investment made and with the hope of the investors, which we assume by
above the normal market interest, as well as generating enough liquidity to
that threatens the continuity of the company.
We must be clear about the two final objectives of the project so that it is
viable
Benefits
Liquidity

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 To carry out a feasibility study, we must prepare the following
budgets:
Of Investments
On financing
Provisional income statement (Revenue and Expenses)
Financial plan (cash budget)

Once completed, the following circumstances must be met:

The financing budget must cover the investment budget.
2. The provisional income statement must be positive, as we have said.
previously, sufficient.
The financial plan must show positive liquidity every year and in all
months of the first year.

The objective of financial analysis is to assess the economic situation.

current financial situation of the company and project its future.

To judge the business management of the economic unit to predict its

future evolution and the ability to make decisions with the least possible uncertainty.
This section aims to analyze the economic and financial viability of
business during the planning period. Normally, the planning period
It will be between 1 to 5 years, with a standard of 3 years.

For this, an Investment Plan will be implemented for the launch of the
company detailing the assets and a Financing Plan with the sources of resources
own or external necessary for making the investments, as well as the functioning of
the company.

In addition, a Revenue Forecast will be made with product sales and

services inherent to business activity, as well as other income
extraordinary. Likewise, a Forecast of Expenses will be prepared that includes the purchases
of raw materials and components, the supply of supplies, the expenses of
personal, taxes, and overhead expenses.

Based on the Income and Expenditure Plan, we will prepare the Treasury Plan or
Cash flow with the aim of ensuring the liquidity of the company.
short term and financial solvency in the medium and long term.

From these provisional plans, the Balance Sheet and the Income Statement will be prepared.
Results. Finally, certain economic and financial analyses will be conducted based
mainly in ratios, with the aim of ensuring the viability of the implementation
operation and functioning of the company.

20
6. LEGAL PROCEDURES FOR THE CONSTITUTION AND IMPLEMENTATION
MARCH.

NEGATIVE CERTIFICATION OF NAME (BUSINESS NAME)

It is a certificate confirming the non-existence of another company with the same name.
than the one that is intended to be established.
The Central Commercial Registry is requested
Documentation
There is an official standardized form in which the chosen name is recorded.
up to a maximum of three. It is necessary to always indicate the type following the name
society in question. It can be requested online. The certification is a
essential requirement for the granting of the deed
Public. The reservation of the company name must be made by one of the partners and is
it is maintained for a period of six months and the certificate expires in three months.
(In the case of New Limited Liability Company, see the page that gathers the procedures)
to establish it).

PUBLIC DEED
The granting of this is the act by which the founding partners proceed to sign.
from the Deed of Constitution of the Society. It is carried out before a notary.
Documentation to be provided:
Negative certification of the name certifying the non-existence of another company
with the same name.
Accreditation of the disbursement of share capital. (In cash or by certification
banking).

SETTLEMENT DEL TAX ABOUT TRANSMISSIONS

PATRIMONIAL AND DOCUMENTED LEGAL ACTS
It is a tax that levies onerous property transmissions, operations
corporate and documented legal acts.
Corporate operations
The tax is levied on corporate operations of incorporation, increase and
capital reduction, merger, division, and dissolution of companies, as well as about the
contributions made by partners to cover social losses.
The capital increase made from the established reserve is not subject to it.
exclusively by share issuance premium.
The passive subject. They are required to pay the tax:
The Company: In the operations of incorporation, capital increase, merger, spin-off
and contributions from partners to replenish losses.
The Partners: For the assets and rights received, in case of dissolution of the company and
reduction of share capital.
The tax base of the tax:
In the constitution and increase of capital, it will be the nominal amount of the latter plus the
issue premiums, in the case of companies that limit liability
of its partners, or the net value of the contribution in other cases, as well as in the
contributions from partners to recover losses.
In the spin-off and merger, the base will be the capital of the new entity created or the increase of
capital of the absorbing company plus the issue premiums.
In the reduction of capital and dissolution, the basis will be the real value of the assets and
rights granted to the partners.

21
The tax rate will be obtained by applying the 1% tax rate to the base.
Documented Legal Acts
The tax falls on the acquirer of the property or right, and, in its absence, the persons
that request or solicit the notarial documents, or those in whose interest they are issued.
The tax will be satisfied through variable or fixed installments, taking into account that the document
that is formalized, granted or issued, whether or not it has as its object a quantity or valuable thing in
at some point during its validity.
The settlement is presented and the payment is made at the treasury offices of the
autonomous communities where the Company is domiciled.
Documentation
The necessary form for the tax settlement is Model 600 provided by the
Department of Finance corresponding.
First copy and copy of the Deed of Incorporation of the Company
the ID of the legal representative of the company and the Tax Identification Number of the Company

The deadline for submitting the settlement is 30 business days from the granting of
the public deed before the notary.
In the case of New Business Limited Company, one can opt for the deferral of
one year.

APPLICATION FOR THE TAX IDENTIFICATION NUMBER (NIF)

It must be requested by any legal entity, public or private, regardless of its
activity. The purpose of the Number is to identify the Society for tax purposes.
The application is made at the Administration of the corresponding Tax Agency.
tax domicile of the Company or Entity. It can be carried out by the legal representative or
representative of the Society or Entity, proving their status with the corresponding
public deed or a partner certifying their identity with the DNI.
The procedure must be completed within the 30 calendar days following the establishment of the
Society.
Documentation to provide:
To obtain the provisional NIF, which will be valid for 6 months, the following must be submitted:
Model 036 form duly filled out
Photocopy of the Deed or Articles of Incorporation of the Company
Photocopy of the ID of the signer of the application, who must be a representative officer of
the Society or Entity.
To obtain the definitive NIF card, the following must be presented:
Model 036 safeguard
Original of the first copy of the Constitution Deed registered in the Registry
Mercantile.
Photocopy of the registration form

CENSUS DECLARATION
The Tax Declaration for the start, modification, or cessation of activity that must be
present individuals, professionals and the
societies will be presented in official print at the Agency Administration
Tax corresponding to the company's tax domicile.
Documentation to be provided:
the completed Form 036/037
First Copy of Deed
Photocopy of the Tax Identification Number (NIF)

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REGISTRATION IN THE COMMERCIAL REGISTER
Once the Public Deed of Constitution is granted, the registration of the
Company in the Commercial Registry. From this moment on, the Company acquires
full legal capacity.
It is registered in the Commercial Registry of the province where the Company is domiciled.
Documentation to be provided:
the Public Deed of Incorporation of the Company
Photocopy of the Tax Identification Number (NIF)
Settlement of the Property Transfer Tax. Form model 600
complied.

TAX ON ECONOMIC ACTIVITIES

It is a tribute for exercising, within the national territory, business activities.
professional or artistic, whether practiced in a specific place or not, and whether they exist or not
specified in the tax rates.
Since January 1, 2003, companies with a revenue of this amount are exempt from this tax.
businesses from the previous year being less than 1,000,000 euros. They are also exempt.
start-up companies, during the first two periods. In these cases, the
census information corresponding to the taxable elements that this tax levies
It is provided in the Tax Registration Declaration (model 036/037).
In the case of non-exempt subjects, the registration request for the tax must be made in
the Administration of the Tax Agency corresponding to the domicile of the activity.
The settlement and collection will be carried out at the town hall. Some
Municipalities and provincial councils have the authority in the processing of this registration.
tax.
Documentation to be provided:
Official print for municipal fee model 840
Form 036/037 for registration in the Census.
the company's NIF.

MUNICIPAL CONSTRUCTION LICENSE

It is a permit required for carrying out any type of works in premises.
warehouses, buildings, etc., within a municipality.
Request is made in the Department of Urban Planning of the City Council
Types of licenses:
License for the execution of small-scale works necessary for the
conditioning of premises.
Works that can be carried out without the intervention of a professional.
titled. The following are included:
Interior works in buildings that do not affect structural elements of the
same (beams, walls, etc.).
Outdoor works on buildings that do not involve an increase in dimensions of
the existing facade openings, nor affect structural elements (canopies,
balconies, etc.)
Review or repair of the non-structural elements of the building.
All works that imply an increase in buildability are expressly excluded.
Documentation:
Municipal form
Descriptive memory of the works

23
 Budget for the same, at market prices and broken down by items and prices
unitarians.
Scale plans of the floor and section, dimensioned, of the current state of the premises.
Scale plans of the floor and section, dimensioned, of the modifications that are
they intend to carry out.
In some municipalities, property title of the property or contract of
leasing.
Applicant's ID.
If the work to be done includes a modification of the facade, it must be included.
also
Scale plans of the facade in the current situation and plans of the modifications
what is intended to be carried out, with specification of the label, its location and dimensions.
Photos, in color, of the facade
License for the execution of larger works
These licenses refer to works not covered in the previous section and whose
execution must be carried out with the intervention of a qualified professional.
Documentation:
Municipal Form.
Project carried out by a competent technician, approved by the College
Professional corresponding and with technical direction of the works.
In some municipalities:
Property title of the property or lease agreement.
ID of the applicant, in the case of an individual, and Tax Identification Number and ID of the proxy if applicable
of societies.
The start date for the works is 6 months from the issuance of the permit.

MUNICIPAL OPENING LICENSE

It is the verification order that the company's request complies with the
usage standards provided in urban planning plans. They will be subject to control
urban planning
a) The first opening of commercial and industrial establishments.
b) Changes or additions of activities or titleholders, even if they do not imply a change or
addition of usage classes.
c) The modification or physical expansion of the premises' conditions and/or their
installations.
d) The use of premises as support or complement to the main activity
located in another premises that is not connected.
The license application must be made at the Urban Planning Department of
City council corresponding to the individual or legal entity that intends to carry out a
activity.
Types of licenses:
Opening licenses for harmless activities:
Innocuous activities are those not included in the Activities Regulation.
Annoying, Unhealthy, Harmful and Dangerous.
Documentation:
Municipal Form
In some municipalities: Deed of ownership or lease agreement of
property.
Photocopy of the ID. In the case of companies, articles of incorporation and tax identification number (NIF).

24
 Floor and section plans, dimensioned, with the maximum possible detail (indicating the use
of each dependency, the emergency lights, placement of fire extinguishers, etc.).
Situation plan of the premises in relation to the streets where it is located.
In some municipalities, a location plan of the premises is required in relation to
the rest of the premises of the building.
Photocopy of the registration in the Tax on Economic Activities or Declaration
Census.
Opening licenses for qualified activities:
They are those that require power installation or that pose risks or
inconveniences, or exceed the dimensions set by the Municipal Ordinances. They
defined in the Regulation of Annoying, Unsanitary, Harmful Activities and
Dangerous.
Necessary documentation to apply for the license:
Municipal Form
Relationship of neighboring residents
Technical project of the facilities signed by the competent technician and endorsed by
the corresponding Official College, and with Faculty Direction. Said project must be
to contain
Descriptive memory
Floor plans and sections, dimensioned
Location plans of the premises in relation to the rest of the premises in the building
Budget, at market prices, for machinery and facilities
Situation plan
List of machinery indicating its power
Copy of the registration in the Economic Activities Tax or
Census Declaration.
In some municipalities: Deed of ownership or lease contract of
property.
Other documentation:
Documentation necessary for the application for extension or modification of license
Municipal Form for this purpose
Copy of previous opening license
Property deed or lease agreement when it comes to extension of
surface, as well as presentation of new plans, regarding the entirety of the premises.
Registration in the new section of economic activities
Required documentation for the transfer of ownership of the license
Municipal form for this purpose
Original of the previous opening license
Observations
In order to avoid a useless investment, the businessman must make a consultation.
previously before the corresponding Urban Planning Department, to find out the possibility
to obtain a license to open for the type of business or activity that is carried out.
To carry out the query, it is necessary to present the data related to the type of activity.
characteristics of the premises, situation, etc.
The application for the license must be made by the individual or legal entity that intends to
carry out an activity.

25
REGISTRATION IN THE REAL PROPERTY REGISTER
It consists of the registration of acts and contracts related to ownership and others.
real rights over real estate. This registration can be carried out by the one who acquires it.
a property, whether it is transmitted, has an interest in insuring it, or who holds its representation.
It is registered in the Real Estate Property Registry.
Documentation to be provided:
the public deed of purchase and sale
The proof of payment of the Tax on Property Transfers and Acts
Documented Legal Matters.
The payment of the levy on the increase in land value
The ownership or existence of encumbrances on the property (mortgage or
notes of lien) that encumber it, requesting a certificate of ownership and
charges, through an application directed to the Real Estate Registrar.

REGISTRATION IN THE INDUSTRIAL REGISTER AND AUTHORIZATION OF THE

START-UP OF INDUSTRIAL ACTIVITY
In the Industrial Registry, the following must be registered:
A new industry
The expansion or modification of the registered industry
The relocation of the industry
Change of ownership
Change of activity
the seasonal cessation or permanent reduction, replacement of machinery or any other
modification of the data listed in the Industrial Registry.
The registration application is submitted to the autonomous community registry.
corresponding.
Documentation to be provided:
The Duplicate Application Form
the ID of the sole proprietor or the Articles of Incorporation in the case of companies
Photocopy of the Tax on Economic Activities or Census Declaration
The installation project signed by a competent technician, approved by the College
Official in charge.
In the event that the presentation of the project is not necessary, a written statement will be provided.
expressing the characteristics of the facilities.
The electrical installation bulletin signed by the authorized installer
Economic-Industrial Project
Justification of hygienic-sanitary conditions
For registration in the Industrial Registry, a certification issued by the
competent technician, certifying that the installation conforms to the project.

QUALIFICATION AND PRIOR ADMINISTRATIVE AUTHORIZATION OF THE

SOCIETY
The authorization and qualification of the company is requested by one of the promoters of the
type of company to be created.
It is presented before the authority of the corresponding body, which varies depending on the type of
society to be established.
The documentation to be provided also depends on the type of company to be established.

26
REGISTRATION IN SPECIAL RECORDS
Once the company is established and registered in the Commercial Register (except for the
(cooperative), the registration of the society in the special register proceeds.
corresponding. For example, the following can be cited:
For the Cooperative Society, it will be in the General Register of Cooperatives or the
Cooperative Registers of the Autonomous Communities.
For Labor Societies, it will be in the General Register of Labor Societies or the
corresponding to the autonomous communities.
For Venture Capital Companies, registration will be carried out in the Registers
Specials from the National Securities Market Commission.
For Reciprocal Guarantee Societies, registration must be carried out in the Registry.
Special of the Bank of Spain.

REGISTRATION OF THE COMPANY WITH SOCIAL SECURITY

It is an administrative act by which the General Treasury of Social Security
application from a businessman, register him in the Social Security System,
which will be valid during the existence of the entrepreneur. Consequently with the
registration of the company, the General Treasury of Social Security assigns the
"Contribution Account Code" for its numerical identification. In this act the
The entrepreneur must indicate whether they opt for the National Social Security Institute (INSS)
or a Mutual Patronage to cover work accidents and illnesses
professionals.
The Patronal Mutuals are collaborating entities of Social Security,
supervised by the Ministry of Labor and Immigration.
Registration will be carried out at the Territorial Treasuries, Agencies or Administrations.
from Social Security.
If it is a Commercial Company, it must prove:
the personality of the signer with the ID number
the existence of the Company, with the Public Deed of Constitution
The signatory's powers, with notarial power
Necessary documentation for the registration of the company:
Copy of the Economic Activities Tax or Censal Declaration
The TA-6 application form for registration
Four copies of the association document with the Mutual Employer, or the TA model.
16, in duplicate, in the event that the option of the National Institute has been chosen
Social Security.
Necessary documentation for the worker's affiliation:
Copy of the worker's ID. Copy of the TA-I card if the worker was present.
previously affiliated.
A-1 card in duplicate for first-time workers
Form A2/2
Printed model PI, in triplicate, for workers who have dependents.
The necessary requirement for companies to affiliate with Social Security is to provide
at least one worker.
The company must obtain an employer number for each province where it has a center.
of work. Likewise, within each province, a business number must be obtained.
for each awarded activity and different Work Ordinance.

27
OPENING COMMUNICATION OF THE WORK CENTER:
Once the company is established or the entrepreneur has decided to start it
activity, this procedure must be carried out.
The opening statement must be made by the legal representative of the company or
individual entrepreneur in the labor departments of the Autonomous Communities.
The necessary documentation is an official form provided at the ministry of
work corresponding to the autonomous community in which the center is established
work.

LEGALIZATION OF THE VISITORS' BOOK

It will be enabled in the provincial labor and Social Security inspections.
Companies, whether or not they employ workers on behalf of others, are required to have in place
each workplace has a Visitors' Book available for the officials of the Corps
National Labor Inspection.
The official model of the Visitor's Book is established as mandatory.
Labor Inspection.
Each of the Guest Books must be filled out on the first page by the
Head of the Provincial Labor Inspection, who will certify the authorization of the Book,
collecting data from the company as well. It will also be sealed on all its pages.
The proceedings carried out by labor inspectors as a result of the visits
Those carried out will be extended simultaneously in duplicate, leaving the copy in possession
from the acting Inspector for record-keeping and filing in the Inspection offices
Provincial Labor Authority.
When it is necessary to fill out a new Visitors Book because the previous one has run out
previous or due to significant deterioration of it, this must be submitted simultaneously
last to believe such extremes, making the timely reference noted in the
new book.
In cases of loss of the Visitor Book, it must be expressly communicated as such.
circumstance to the Provincial Labor Inspection and obtain a new one in the
maximum period of 15 days.
At the presentation of the Visitor Book for its handling at the Inspection Office
The Provincial Labor Office will be accompanied, duly completed, by the Record of
Company.
Business owners will keep the Visitor Books available for Inspection.
I work for a minimum period of 5 years from the date of the last diligence,
once exhausted.
The absence of the Visitor's Book, its non-presentation to the officials of the Body or the
failure to conserve it during the indicated period shall be considered as
infraction.

7. SUBSIDIES (Updated as of January 27, 2016)

The entrepreneur should not rely on them when preparing their economic viability plan.
financial since its concession depends on the fulfillment of certain
criteria and the help may take time (or may never be received)
Grants for entrepreneurs are announced annually (although the
criteria do not usually vary substantially) by the State itself, the Communities
Autonomous entities, local entities, etc., and are classified by sector of activity.

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1.- The One-Time Payment for Unemployment
The One-Time Unemployment Payment (also known as Capitalization of
Unemployment) is the first grant for entrepreneurs that we are going to analyze. This
help aims to facilitate the launch of entrepreneurial projects oriented
self-employment. To collect it, the following requirements must be met:
1. At the time of your request, the activity for which it is requested may not be available.
started.
2. To be entitled to collect at least three months of unemployment benefits.
3. Not having received this assistance previously in the last four years.
4. The activity should aim for self-employment.
5. It is mandatory to start the activity within a maximum period of one month from the payment.
of this benefit.

2.-Support for young entrepreneurs

With youth unemployment above 50% and an added difficulty in accessing the
It seems obvious that young people receive additional support to start their own businesses.
these aids highlight the Participative Loan for Business Creation for
Youth of Enisa (National Innovation Company). The following are established
requirements:
1. Age under 40 years.
2. Assistance aimed at acquiring the necessary assets to develop the
activity.
Enisa is a public company that actively participates in financing projects.
viable and innovative businesses through participatory loans for anyone
type of new startup company. You will be able to see the requirements and conditionsis here.

3.-Aid for women entrepreneurs

Another group of aids and subsidies is aimed at facilitating the startup of
businesses of women entrepreneurs. Among all of them, I would like to highlight the
following:
Microcredits granted by eThe Ministry of Equality.The conditions of this
types of financing are very attractive. For example, they do not need to present collateral.
those projects classified as viable. All of those can apply for these aids.
women willing to undertake and who face difficulties accessing financing
(or those without collateral).
The Institute of Womenoffers numerous aids to women who wish to
to undertake such as technical and financial consulting.

4.- Innovation aids

In a country clearly dominated by economic activities with little component
technological it seems reasonable that part of the financial aid to
entrepreneurship should be aimed at promoting technological activities.The Ministry
of Economy and Competitivenessoffers support that as an entrepreneur can
a tax reduction between 35% and 60% for those projects
oriented towards research and technological development.

Aid and grants for technology-based companies

5.- EBT: It is designed to supporttechnology-based companies (EBT) of
innovative character. In this case, greater precision is required in the business plan.

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 6.- NEOTEC: The aids ofNeotec Programthey finance the startup
of new business projects that require the use of technologies or knowledge
developed from research activity, in which the business strategy
is based on the development of technology.
7.- INVEST:The Innvierte Programis part of the Spanish Strategy
of Science and Technology and Innovation 2013-2020. This strategy also aims
to promote business innovation through support for capital investment
risk in technology-based or innovative companies.

8.-Aid and subsidies from the autonomous communities

Each autonomous community manages aid and subsidies for creation and
modernization of innovative companies. It is a grant between 15% and the
40% of the investment allocated to innovative companies. To learn about the programs
you must contact the department in charge in your Autonomous Community.

9.-Support for Business Angels

Investors, private funds, and so-called business angels are a good option.
for the financing of entrepreneurs. A Business Angel provides money,
experience or a combination of these factors is what is called "smart money"
because they can provide you with contacts, knowledge, and many more things. But you must
to know that through theentrepreneurs lawthere are important aids and deductions
for them and if you explain it to them you can be helpful in gaining their support. For example
they will be able to deduct 20% from their income tax return up to €50,000 in addition to that
Some autonomous communities add an additional tax saving in the autonomous segment.

10.-Aid for internationalization

Another of the pending subjects in our country is undoubtedly foreign trade.
Institute of Foreign Tradeoffers support to those entrepreneurs who want
to venture into conquering the foreign market.

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