The Council of Ministers has approved the draft bill of the Crea y Crece Law, which will be sent to the Spanish Parliament for its parliamentary processing. If the usual deadlines are met, it is expected to be approved during 2022.
The regulation is one of the main reforms of the Recovery, Transformation and Resilience Plan, aimed at boosting the creation of companies and facilitating their growth and expansion.
Crea y Crece Law
The objective of this law will be to reduce and streamline the procedures and conditions for the incorporation of a Limited Liability Company. To generalize the use of electronic invoicing. It also establishes measures to fight against late payment in commercial transactions, extending the obligation to issue and send electronic invoices to all companies and self-employed workers in their commercial relations. Another measure will be to promote alternative financing through mechanisms such as crowdfunding.
The creation of a company will be facilitated, reducing its economic cost and simplifying the procedures for its incorporation. The minimum share capital of Limited Liability Companies will be reduced from €3,000 to €1.
This measure is intended to bring Spain into line with other EU countries.
The telematic incorporation of companies will be promoted through the single window of the Information Center and Business Creation Network (CIRCE). This guarantees a reduction in the time required for its creation and in the notary and registry costs. In fact, it is intended that a company can be created in less than 10 working days.
Likewise, any modification that affects the company will also be limited to 10 working days. Such as a capital increase or reduction.
In order to favor the growth of companies and to fight against late payment in commercial transactions, the obligation to issue and send electronic invoices is extended. In all commercial relations between companies and freelancers. And in order to reduce transaction costs, improve the operability of companies and obtain reliable information on effective payment terms.
Obligations of the Crea y Crece Law
Likewise, it is established that companies that do not comply with the payment terms established in the Dilatoriness Law (Law 3/2004) will not be able to access a public subsidy or be a collaborating entity in its management.
Although this new Crea y Crece Law allows the creation of companies with a minimum share capital of 1€. The new companies will be obliged to allocate 20% of their profits to a Legal Reserve. This obligation will remain until this Reserve added to the Share Capital reaches the minimum amount of €3,000.
Finally, if the company has debts and is dissolved without being able to satisfy them with the resulting assets. The partners will be jointly and severally liable for the difference between the amount of €3,000 and the amount of the subscribed capital.
Alternative financing
Finally, this Law seeks to strengthen alternative business financing. To this end, it adapts the national regulation of crowdfunding to European regulations, reinforcing the protection of investors. It allows the creation of vehicles to group investors and thus reduce management costs.
Boosting the venture capital industry. The type of companies in which these entities can invest is broadened. Including financial companies with a high technological component.
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