The Government has launched the draft bill of the Business Creation and Growth Law with the aim of simplifying the procedures for the creation of a company and combating delinquency.
With this law, both the cost of creating a company and the time it takes to set it up will be less costly and more agile.
One of the fundamental axes of this draft bill, which is expected to go to the Congress of Deputies before the end of 2021, is the share capital for the incorporation of a limited company, which will go from the 3,000 currently required by law to just 1 euro.
Spain is one of the EU countries where it takes the longest time to set up a company, 13 days on average. The Single Electronic Document will become the easiest method to create a Limited Liability Company.
Another of the key points of this law is to combat commercial delinquency and change the culture of Spanish SMEs to orient them towards prompt payment. Currently the legal term is 60 days, but it is not particularly complied with: the average delay in payment among Spanish SMEs and the self-employed is much longer, forcing them, in order not to lose the commercial relationship, to accept them without demanding compensation such as recovery costs or indemnities, despite the pressure that this may put on their financial capacity.
To this end, this draft bill contemplates a series of measures:
- Promotion of electronic invoicing among SMEs and the self-employed. This promotion will be subsidized with the European Funds for the digitalization of companies.
- Penalties for companies that do not comply. Those that do not comply will not be eligible for public subsidies.
3.The creation of a Delinquency Observatory to monitor and promote good payment practices.
With regard to support for business growth, this law contemplates a battery of measures to improve financing instruments for business growth as an alternative to bank financing, such as crowdfunding, collective investment or venture capital. In addition, within the initiative, the catalog of economic activities exempt from licensing will be expanded.
We will have to wait until 2022 for it to be implemented