Social Security procedures for setting up a company

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The Social Security formalities for setting up a company involve an obligation to register a company. In Spain there are a series of essential requirements to complete this process, with the aim of assigning the entrepreneur a number in the General Treasury of Social Security, and identify the activity of the company in a particular regime in the Social Security system.

At Asesoría Orihuela Costa we are specialists in advising on the creation of companies in Spain, if you need help to carry out this procedure, contact our legal team and count on the support of experts in this type of administrative process.

Essential documentation for registering a company with the Social Security system

Before we begin to analyse the registration process, we will determine the documents required to complete the process.

Application for registration in the social security system. This document is related to the TA6 application analysed below.
National Identity Document (DNI) of the legal representative.
Deed of incorporation duly registered in the Mercantile Register.
Tax Identification Number (NIF) of the company.
Declaration of registration in the census of business people, professionals and withholders (Form 036).
Declaration of registration with the Economic Activities Tax (Form 840).
Document accrediting the powers of the signatory, if not specified in the deed.
Authorisation, if the application is not submitted by the company representative.
National Identity Document (DNI) of the authorised person, if any.
Declaration regarding the protection against accidents at work and coverage of the economic benefit for temporary incapacity by the Social Security or by an Employer’s Mutual Insurance Company.

These documents will be essential for the most part, although in some cases they are only requested in certain situations, e.g. documents referring to authorised persons.

Steps to be taken prior to Social Security procedures

Before going to the Social Security it is necessary to complete a series of prior formalities, which are summarised below.

Choice of the legal form of the company

The legal form of a company refers to the legal modality that the company itself chooses to carry out its activity and affects its tax and accounting obligations.

In Spain there are the following legal forms for companies:

Self-employed
Limited Company (S.L)
Public Limited Company (S.A.)
Cooperative
Sociedad Civil (S.C.)
Community of goods

The most common forms are the first three, Autónomos, Sociedad Limitada and Sociedad Anónima, although there are other legal forms for companies of a special nature.

RETA registration

The RETA refers to the Special Regime for Self-Employed Workers. Both the individual entrepreneur and the administrators of the company must register with the RETA in order to be part of this register.

Memorandum and Articles of Association

For the foundation of a company there must be a public deed confirmed before a notary, which establishes that the company has been effectively constituted and that it has a number of characteristics that are also included in this document.

The notarial deed is therefore the constituent act of the company itself.

Entry in the Commercial Register

The company must also be registered in the Commercial Register, or equivalent public register.

NIF

Every company must have a NIF or Tax Identification Number. The Tax Agency currently allows this procedure to be applied for online.

Registration in the census of entrepreneurs

Form 036 of the Tax Agency allows the representative(s) of the company to register in the Census of Employers, Withholders and Professionals.

Registration with the Economic Activities Tax (Impuesto de Actividades Económicas)

By means of form 840 it is essential to apply for registration with the Economic Activities Tax.

Once the 036 and 840 forms have been filed, we can proceed to complete the final formalities, this time with the Social Security.

Administrative process for setting up a company in the SS

In general terms, we can divide the Social Security procedures for setting up a company into the following stages.

Application for model TA.6

The TA.6 form is the main procedure for registering a company with Social Security.

By means of this procedure we register with the Social Security as self-employed, and therefore the employer opens a contribution account. What does the TA.6 form include? The data relating to the company, its activity and the Social Security regime to which its activity refers.

The TA.6 form is submitted to the Social Security Treasury, either in person or online means through the electronic office.

Temporary incapacity cover

Social Security also makes it compulsory to choose the coverage in the event of temporary incapacity of workers. It is possible to choose between the National Institute of Social Security (INSS) or the Employers’ Mutual Insurance Company for Accidents at Work (Mutua Patronal de Accidentes de Trabajo).

Quotation code

It will also be necessary to obtain a contribution account code to manage the registration of workers.

This numerical code is granted by the Social Security, through the General Treasury. The Contribution Code is assigned to each employer and is carried out through the TA.6 model.

Appointment request

The procedures also include requesting an appointment at the Social Security Treasury for the delivery of the documentation. Once the administration sets a date, the employer must go in person to complete the process.

Advice on registering a company with the Social Security system

Registering a company in the relevant registers is a complex process. In most cases it is necessary to contact different administrations, through processes that can be lengthy if you do not have the right advice.

At Asesoría Orihuela Costa we help you with all the paperwork that you need to carry out with the Social Security, and with other administrations involved in the creation of a company.