Incorporation of companies by the CIRCE method: types of companies and incorporation procedure

Incorporation of companies by the CIRCE method: types of companies and incorporation procedure

In the Spanish business world, one of the most essential procedures when starting a business is the creation of a company. In order to speed up this procedure, the CIRCE system (Information Center and Business Creation Network) has facilitated the incorporation of companies, offering entrepreneurs a fast and efficient tool. 

What is the CIRCE method?

The CIRCE system is a tool provided by the Spanish Ministry of Industry, Commerce and Tourism, which allows the creation of companies in an efficient and fast way. This system connects entrepreneurs with the different agencies and entities involved in the incorporation of a company, such as the Tax Agency, the Social Security and the Mercantile Registries. Thanks to CIRCE, the process of creating a company is carried out in a single step, from the electronic signature of the documents to the registration of the company in the Commercial Registry. 

The process is based on the use of a standard form that facilitates the collection of the necessary data for the incorporation of the company, which considerably reduces administrative procedures and management time.

Types of companies that can be incorporated using the CIRCE method

The CIRCE system allows the incorporation of the following types of companies:

1. Limited Liability Company

The Limited Liability Company is one of the most common corporate forms in Spain due to the protection it offers against corporate debts. In an SL, the liability of the partners is limited to the capital they have contributed, which makes it a very attractive option for entrepreneurs seeking to protect their personal assets.

• Minium capital: 3,000 euros. 
• Partners: can be one or several. 
• Libility: limited to the capital contributed. 

2. Public Limited Company 

The Public Limited Company is another type of company that can be incorporated through the CIRCE system. Although not as common among small businesses, it is an ideal option for entrepreneurs who have plans for considerable expansion and are looking to attract investors.

• Minimum capital: 60,000 euros, of which at least 25% must be paid up at the time of incorporation.
• Partners: there may be one or more, and the capital stock is divided into shares.
• Liability: limited to the capital contributed.

3. New Company Limited Liability Company 

The New Company Limited Liability Company is a type of limited company, created to simplify the incorporation of new companies. It is aimed at entrepreneurs who do not require a complicated structure and want a quick and agile creation process. 

• Minimum capital: 3,012 euros.
• Partners: Between 1 and 5 partners.
• Liability: Limited to the capital contributed.

4. Cooperative Society

Although it is not very common, it is also possible to create a Cooperative Society through the CIRCE system. Cooperatives are entities in which the members have an active participation in the management and organization, and their main objective is to cover common needs among the members. 

• Minimum capital: depends on the autonomous community.

• Members: minimum 3 members.
• Liability: limited to the capital contributed.

How is a company created through the CIRCE method?

The process of creating a company through the CIRCE system is simple and totally digitalized, which allows all the procedures to be carried out telematically. The main steps to create a company through CIRCE are as follows:

1. Access to the CIRCE platform

The first step is to access the CIRCE portal. To do so, it is necessary to have a digital certificate or electronic ID, which enables the electronic signature of documents.

2. Selection of the type of company

Once inside the platform, the user must select the type of company he/she wishes to create, such as Limited Liability Company (SL) or Public Limited Company (SA), among other available options.

3. Filling out the form

The next step is to complete an online form with the company and partners’ data. Details such as the name of the company, the economic activity, the registered office and the capital contribution, among others, must be included.

4. Obtaining the corporate name certificate

The CIRCE system automatically verifies the availability of the proposed company name and generates a company name certificate, which ensures that the chosen name is not already registered.

5. Drafting and signing of the articles of incorporation

The system generates a draft of the bylaws, which are the documents that regulate the internal functioning of the company. The partners must sign these bylaws electronically.

6. Presentation of form 036

The next step is the presentation of form 036, which is the census declaration of the Tax Agency. This form includes the company’s tax data, such as its activity and tax regime.

7. Registration in the Commercial Registry

Once all the formalities have been completed, the CIRCE system sends the documents for registration in the Mercantile Registry, which grants the company legal personality.

8. Registration with the Social Security

The system also facilitates the registration of the company in the Special Regime for Self-Employed Workers (RETA) or in the corresponding regime, depending on whether the company will have employees.

9. Obtaining the NIF

Finally, the CIRCE system is in charge of obtaining the company’s Tax Identification Number (NIF), which allows the company to start its fiscal and commercial activities legally.