The company was founded on 7 September 1920 in Eibar (Guipuzcoa), before Eibar’s notary public Alejandro Astaburaga Eraña.
Two employees of the company Orbea S.R.C., which at the time was a firearms manufacturer (and was later to produce bicycles and motorcycles), decided they had the sufficient know-how to embark on the creation of a new firm, specialising in high-quality revolver manufacture.
Their names were Juan Solozabal Mendive and Juan Olave Bilbao, and the new company they founded was called Olave, Solozaval SRC.