Does a self-employed worker have a registered name? What is the registered name (razón social), and what is a trade name?

When you embark on your venture as a self-employed worker, one of the things you need to be clear about is what a self-employed worker's registered name (razón social) is and how it will affect your business.

The registered name is the name that every company has and that distinguishes it from all other companies. The registered name serves to identify the company formally and is also useful for administrative and legal purposes. However, when it comes to a self-employed worker, many people do not know whether or not they can also have a registered name.

What is the registered name for a self-employed worker?

For a self-employed worker, the registered name is their first name and surnames. For a company, it is different.

For a company, the registered name is the legal name under which it is entered in the Commercial Registry. And it must meet certain requirements of distinctiveness and exclusivity so that it cannot be confused with those of other companies.

The registered name is often confused with the trade name.

Companies must have a legal name together with an identification number, which is the tax identification code (CIF). The registered name is the name given to the company upon incorporation: its official name. The registered name will be used above all for administrative and legal purposes, in a more formal manner.

Differences between trade name and registered name

Using a self-employed worker's registered name is often not the most appealing option when it comes to selling a brand. For that reason, it is possible to use another name to refer to the company: the trade name. You can see this in the following example:

Trade name: BBVA.
Registered name: Banco Bilbao Vizcaya Argentaria S.A.

So, what is a self-employed worker's registered name?

For a self-employed worker, the registered name is their first name and surnames.

The registered name is essential for invoices. This is because, under the invoicing regulations (reglamento de facturación), the invoice must show the registered name (or the first name and surnames, in the case of a self-employed worker). For your invoice as a self-employed worker to be valid, you must include your first name and surnames.

The trade name, by contrast, has no validity on an invoice. It may, however, appear on it. But only as long as it does not replace the registered name. And although there is no rule specifying where it must appear, it is advisable to include the registered name at the top of the invoice, together with the tax domicile and the tax identification number (NIF).

Self-employed worker's invoice: what details must be included?

A self-employed worker's invoice is a document containing the details of a transaction between a self-employed worker and a client. In Spain, it must include the following details:

• Name and address of the self-employed worker.
• Name and address of the client.
• Tax identification number of the self-employed worker.
• Tax identification number of the client.
• Detailed description of the goods or services provided.
• Price of the goods or services provided.
• Invoice date.
• Invoice due date.

Change of registered name

The law allows a company to change its registered name provided that the change is justified. For example, when the business evolves or is transformed, it may need a change of registered name.

The process for changing a company's registered name is as follows:

• You must apply to the Commercial Registry for a negative name certificate (certificación negativa de denominación), which will allow you to verify that the new name is available.

• Next, you must include the change in the articles of association and then proceed directly to enter the new name in the Commercial Registry of the relevant locality.

• Once the amendment has been registered, you must notify Social Security and the Spanish Tax Agency (AEAT), enclosing a copy of the public deed.