The Law of Creation and Growth Companies (Create and Grow) it was approved by the Congress of Deputies on September 15 and published in the BOE on the 29th of the same month. The objective is facilitate the creation of companies, reduce regulatory obstacles, fight against delinquency and promote its growth and expansion. The regulations are aimed at promoting the dynamism of the productive fabric and responding to the demands and recommendations of the different international organizations.
The law promotes the formation of companies and facilitates their growth and expansion, especially SMEs, putting them at the center of economic policy. The improvement in the process of business growth is essential to increase productivity, the quality of employment and internationalization, fundamental elements to increase the competitiveness of companies and boost economic growth, according to the approval of this legislation by the Government.
Next, we will review the main points of the Create and Grow Law:
Social capital to create a company
The elimination of the requirement to have a minimum share capital of 3,000 euros will allow the creation of a limited liability company with just one euro. To this end, the consolidated text of the Capital Companies Law is modified. This is going to mean a lowering of the costs of incorporation.
However, the new law establishes that at least the 20% of profits obtained since the creation of the company must be allocated to a legal reserveuntil it reaches – together with the social capital – the €3,000. Currently it is mandatory to allocate 10% of the profits to the legal reserve until reaching 20% of the share capital.
In addition, with the new norm it will be extendedán the options of the founding partners regarding the social capital that they will subscribe based on their needs, according to Ce Consulting.
delinquency
The regulation, promoted by the Government, includes measures to advance in the fight against delinquency in commercial operations, one of the causes that has the greatest impact on the liquidity and profitability of many Spanish companies, with particular impact on SMEs.
To this end, the obligation to issue and send an electronic invoice is extended in all business relationships to companies and the self-employed, which will guarantee greater traceability and payment control. This measure, in addition to reducing transaction costs and representing progress in the digitization of company operations, will allow reliable, systematic and agile information to be obtained on effective payment terms, an essential requirement to reduce commercial delinquency.
Likewise, it is established that companies that do not meet the payment deadlines established in the Default Law (Law 3/2004, of December 29, which establishes measures to combat late payment in commercial operations) will not be able to access to a public subsidy or to be a collaborating entity in its management.
Financing
On the one hand, the new law introduces more flexibility so that micro-financing or crowdfunding platforms provide their services, adapting to European regulations.
On the other hand, it expands the type of companies in which venture capital entities can invest. This facilitates access to financing for financial companies with a very high technological component.
The figure of the so-called debt fundsas a boost to the tools to alleviate the debt situation of some companies and facilitate their growth.
business growth
Additionally, the bill improves the efficiency of the regulatory framework for economic activities by simplifying existing legislation, eliminate unnecessary regulations and establish more agile procedures.
The law on trade liberalization measures is modified, expanding the catalog of license-exempt economic activities. Activities that have been considered innocuous by at least one autonomous community are incorporated into the list of basic state regulations.
Likewise, the market unity guarantee law is modified to strengthen cooperation between the different public administrations and the mechanisms for the protection of companies and consumers against measures that do not respect the principles of proportionality and necessity.
