What to register in the first month after incorporating

Terms used

• NIF — The NIF is the company's tax identification number, used on invoices, bank accounts and tax filings.
• IAE — The IAE is a local business activity tax that most small and new companies are exempt from.
• CNAE — The CNAE is the statistical activity code you choose to describe your company's main business.
• ROI — The ROI is the register of operators trading with other EU countries, which gives you an EU VAT number.
• Autónomo — An autónomo is a self-employed person registered in the Social Security self-employed regime.

Key rules

• Provisional NIF: It is valid for six months, extendable for another six months if registration is delayed.
• Definitive NIF: Request it within one month of registration in the Registro Mercantil.
• Census first: File the census declaration before your first operations, because it also registers you for VAT.
• Employees: Register each employee with Social Security before they start work.

The order to follow

Do the registrations in this order: provisional NIF, definitive NIF, census declaration, VAT, Social Security. The timeline, documents and checklist below carry the details. This page explains how the steps fit together.

1. Provisional NIF

Your company gets its provisional NIF from the tax agency (AEAT) when you present the notarised deed. It lets you carry out your first operations: opening a bank account, issuing invoices and paying taxes. It is valid for six months, extendable for another six months if registration is delayed.

2. Definitive NIF

Request the definitive NIF within one month of registration in the Registro Mercantil. You show the registration proof to the tax agency, normally with the census form. The registry often tells the agency itself, but do not rely on that. If you miss the deadline, the provisional NIF lapses. The agency may revoke the NIF, which can bring sanctions and block the company's tax activity.

3. Census declaration

File the census declaration on modelo 036 before your first operations, and in any case within one month of incorporation. You file it electronically, or through the DUE if you incorporated via the CIRCE route. If you qualify and have a Spanish electronic certificate or Cl@ve, the simpler modelo 037 can replace it.

It states:

• your identity, registered address and legal representatives
• your activity, with its IAE heading and CNAE code
• your start date
• your VAT regime and your periodic tax obligations and withholdings

4. IAE

You still have to register your activity, but you will most likely pay no IAE. New activities are exempt for their first two years. After that, you are exempt if net turnover from the year before last is under €1,000,000. The exemption applies automatically, with no separate application. Above that turnover you pay the tax and file the IAE form. Turnover is measured across a related group of companies.

5. VAT

You register for VAT in the same census declaration, by stating your activity and VAT regime. The general regime is the default. Other regimes exist, such as the simplified regime and the recargo de equivalencia for retailers. Pick another one only if your activity clearly fits it.

• Returns are quarterly on modelo 303, with an annual summary on modelo 390.
• Companies with turnover over €6M file monthly.
• If you trade with other EU countries, tick the box for the ROI on the same form. This gives you an EU VAT number. Intra-EU transactions are then reported on modelo 349.

These VAT rules do not apply in the Canary Islands, Ceuta or Melilla.

6. Social Security

Register with the Social Security (TGSS) only if you will employ staff or have working administrators.

• Employees: get a company account code, then register each employee before they start work. This is usually online through the Sistema RED or Import@ss. Many regions also require a work-centre opening notice to the labour authority.
• Administrators: if you own more than 25% of the capital and manage the company, or you are paid for management duties, you generally register as self-employed (autónomo). A paid administrator without control goes in the general regime, without unemployment cover. Register on or before the day you start work.

Your split of shares and duties decides which case applies. Confirm it with the TGSS or a gestor before registering.

Timeline and deadlines

• Get your provisional NIF from the tax agency by presenting the notarised deed: after the deed is signed and before registry registration

• File your first VAT return on modelo 303: every quarter once you are operating

Documents you need

• The notarised deed of incorporation, presented to the tax agency so it issues your provisional NIF.

• Proof of your registration in the Mercantile Registry (the registry inscription), shown to the tax agency to obtain the definitive NIF.

• The census declaration on modelo 036, filed electronically with the tax agency, stating your activity, VAT regime and registered address.

• The simplified census form 037 can replace the 036 if you are eligible and have a Spanish electronic certificate or Cl@ve electronic ID.

First-month registrations checklist for a new company

First-month registrations

• Request the definitive NIF within one month of registration in the Registro Mercantil, by showing the registration proof to the Tax Agency, normally with modelo 036.

• File the census declaration (modelo 036, or the simpler 037 if you are eligible) before your first operations and within one month of incorporation. File it online with the Tax Agency or through the CIRCE route.

• Choose the CNAE code (the statistical activity code) and the IAE heading (the tax activity list) for your main activity, and make sure your corporate purpose covers them.

• Register the company with the Social Security (TGSS) to get a company account code, if you will employ staff.

• Register each employee with the Social Security before they start work, online through the Sistema RED or Import@ss.

• Notify the labour authority that you are opening a work centre, if your region requires it.

• Register administrators who own more than 25% of the capital and manage the company, or who are paid for management duties, in the autónomo regime (RETA) on or before the start of activity.

• Confirm that the notary reported your beneficial owners (the people who own or control more than 25%) to the central registry when the company was incorporated.

• Set up the mandatory books: journal, inventory and annual accounts book, minutes book and partners' register book. A sole-partner company also keeps a register of contracts with its sole partner.

• Put the tax calendar in your diary: VAT (modelo 303) each quarter, payroll and professional withholdings (111), and the corporate tax return (modelo 200) in July for a calendar year.

• Plan your year-end filings: legalise the books within four months of year end, prepare the annual accounts within three months, and file them with the Registro Mercantil within one month of their approval.

Frequently asked questions

Does a new company pay the IAE in its first years?

No, a new company pays no IAE (the local business activity tax) during its first two years of activity, and the exemption applies automatically. You still file the census declaration. After that, you stay exempt while your turnover is under €1,000,000; above that you pay and file modelo 840.

How often does a new company file VAT returns?

A new company files its VAT returns every quarter on modelo 303, plus an annual summary on modelo 390.

Do I need an EU VAT number to trade with other EU countries?

Yes, if you trade with other EU countries you must register in the ROI, the register of intra-EU operators, by ticking it on modelo 036. That gives you an EU VAT number you can check online.

What happens if I miss the deadline for the definitive NIF?

If you miss it, your provisional NIF lapses and the tax agency may revoke the NIF, which can lead to sanctions and block the company's tax activity. The registry often tells the tax agency about your registration, but do not wait for that.