The club was founded on May 15, 1955, due to the initiative of a group of men who wanted to encourage their children to practise football by playing matches against other teams from the region.

Its first name was "Bajo Palermo Baby Fútbol Club"; Bruno Montesco was the first president of the recently created institution.

Bajo Palermo initially focused on children's football, building a specific purpose field but also building a bowls green, an athletics track (nevertheless this sport would disappear in subsequent years), a motocross track (which hosted a wide variety of races that were a great success in the Province) and a basketball stadium.

Two years later Palermo Bajo won the Torneo Preparación Oficial of Unión Cordobesa de Rugby, beating Córdoba Athletic by 25–22.

Some players of that team were: Agustín Corchio, Paulo Cecchetto, Gastón Toranzo, F. Interdonato, Juan Covassi, Mariano Moya, Mauro Gallardo, Chevi Irazoqui, Esteban Brouwer de Koning, Marcos Ferreyra, Pablo Rusculleda, Ricardo Barbará, Rodrigo Altamira, Ezequiel Ferrini, Eugenio Morra, Nicolás Cativelli, Daniel Ferreyra and Tomás Brouwer de Koning, being coached by Marcelo Ambroggio and Alfredo Díaz.