The Government approves the law that will allow the creation of companies for one euro

  • The rule will also prevent defaulting companies from receiving public subsidies.

The Government has finally approved this Tuesday the preliminary draft of the Create and Grow Law to favor the birth of companies and facilitate their growth and expansion. The standard, one of the reforms included in the recovery plan agreed with Brussels in exchange for European aid, it was already submitted to public consultation at the beginning of the year and its star measure is the reduction from 3,000 euros current to so only one euro the minimum amount of share capital with which you can create a limited partnership.

With this measure, the Ministry of Economy has pointed out, Spain will align itself with most of the countries of the environment in which a minimum capital is not required. Once approved by Parliament, predictably next year, the law will also facilitate the telematic constitution of companies through the one-stop shop of the Information Center and Business Creation Network (CIRCE), which according to the Government will reduce the deadlines for their creation and the notarial and registry costs.

The legal project also includes a second package of measures to combat delays in payments between companies. Thus, it extends the obligation to issue and forward electronic invoice in all commercial relations between companies and freelancers. The objective is to obtain “reliable, systematic and agile information” of the effective payment terms. Likewise, it is established that companies that do not meet the payment terms established in the Bad Debt Act of 2004 will not be able to access a public grant or be a collaborating entity in its management. In addition, a state observatory of private delinquency, which will monitor and analyze data on payment terms and promote good practices.

On a note, Antoni Cañete, president of the Multisectoral Platform against Delinquencies (PMcM), has considered that these changes go in the right direction, but they are insufficient. Thus, it has asked that the parliamentary approval process include that the law requires a “reliable verification” that companies comply with the delinquency law, that it is not worth because they present a responsible declaration, as well as that a sanctions regime for breach of said 2004 rule.

Related news

For her part, Celia Ferrero, vice president of they, has regretted that with the new law “a new opportunity is lost” to promote the birth and creation of companies. Thus, he has criticized that the project focuses on societies without mentioning the self-employed; focus only on the incorporation of companies but not on other types of authorizations; and pursue business delinquency but not that of public administrations.

The draft approved by the Council of Ministers also expands the catalog of exempt economic activities license (activities that have been considered safe by at least one autonomous community are incorporated into the list of basic state regulations); enable the new Regulatory Improvement Sector Conference and Business Climate to develop a new standard ordinance for the exercise of retail commercial activities and the possible adoption of others in collaboration with other sector conferences; and incorporates measures to improve the instruments of alternative business financing banking, such as ‘crowdfunding’ or participatory financing, collective investment and venture capital.

Leave a Comment