Last Thursday, September 15, the Plenary of the Congress approved the Crea y Crece Act, one of the most important reforms of the Plan for Recovery, Transformation and ResilienceThe purpose of the Act is to strengthen production, facilitate the creation of companies and boost their growth.
Among other measures, it will allow companies to be created from just one euro and in less than ten days, improving regulation and eliminating obstacles to starting up economic activities. Measures will also be taken to combat commercial delinquency and to provide financial support for business growth.
Content
- Crea y Crece Law: creation of companies at 1 €.
- Measures against delinquency under the Crea y Crece Law
- Obligation to issue electronic invoices between businessmen and professionals
- Financial support measures
- Successive Formation Companies and New Venture Corporations
- When does the Crea y Crece Law become effective?
- Conclusion
Crea y Crece Law: creation of companies at 1 €.
It is worth mentioning that there will be the possibility of creating a Limited Company with a share capital of 1 €, a great decrease compared to the 3,000 € it used to be until now.
These approaches are consistent with the fact that no minimum amount of equity capital is required in most countries, such as the United States, Japan or the United Kingdom, and also in 10 of the 27 EU Member States, including France, Portugal and Italy.
In addition to eliminating the obstacle of the share capital, the new law introduces reforms to facilitate and promote the incorporation of SLs telematically, through the “Information Center and Network for the Creation of Companies” (CIRCE) and the “Single Electronic Document” (DUE).
You will be able to access this telematic method for the creation of limited liability companies at any Entrepreneur Service Point (PAE) such as AEMTIA.
AEMTIA is a PAE point and we can process the creation of your SL telematically, saving time and significantly reducing incorporation fees.
On the other hand, the catalog of activities exempted from licensing is extended and several aspects of the Market Unity Guarantee Law are modified.
It also reinforces the obligation for all notaries to be available in the Electronic Notarial Agency.
The “fine print
With the purpose of safeguarding the interest of creditors, two specific rules are introduced for Limited Liability Companies with a share capital of less than €3,000:
1. A minimum of 20% of the profits must be allocated to the legal reserve until the sum of the share capital and the reserve is €3,000.
2. In the event of liquidation, if the assets of the company are not sufficient to pay the company’s obligations, the partners shall be jointly and severally liable for the difference between the €3,000 and the amount of the subscribed capital.
Measures against late payment under the Crea y Crece Law
One of the main pillars of this law is the fight against commercial delinquency.
On the one hand, it is established that companies that do not comply with payment deadlines will not be eligible for aid under the Recovery, Transformation and Resilience Plan and will be required to prove that all eligible expenses have been paid on time.
On the other hand, commercial companies will have to expressly include their average supplier payment period in the notes to their annual accounts .
Obligation to issue electronic invoices between companies and professionals
Along the same lines of the fight against late payment, the Crea y Crece Law obliges all companies and self-employed workers to issue and send invoices electronically in their commercial transactions.
However, some time periods are established so that companies can adapt to these new terms:
- Companies with a turnover of less than 8,000,000 euros will have a two-year margin, and this obligation will come into force as of January 1, 2025.
- 8,000,000, they will have one year, with the obligation starting on January 1, 2024.
To support small businesses in this transition process, the Digital Toolkit Program will include electronic invoicing among the eligible products and services.
Financial support measures
The Crea y Crece Law also takes steps to improve alternative financing methods, such as crowdfunding, collective investment and venture capital:
- More flexibility for these platforms to provide their services in Europe.
- Strengthening investor protection
- Raising the thresholds of the amounts allowed per financed project and per investor.
Successive Formation Companies and New Venture Corporations
Companies under the Successive Formation Regime may choose to modify their bylaws to cease to be subject to this regime and be governed by the rules of Limited Companies, as long as their capital stock does not reach the amount of 3,000 euros.
On the other hand, the regulation on New Companies disappears and all the SNE’s that already existed before the entry into force of this law will have to change to SRL’s and be governed by the rules of the Limited Companies.
When does the Crea y Crece Law become effective?
The Create and Grow Law will come into effect on October 19, 2022, following its publication in the BOE. (With the exception of the sections referring to electronic invoicing, which will come into force in the periods mentioned above).
Conclusion
This law brings changes for both new and existing companies, which will have to digitize their invoicing process .
At AEMTIA, we accompany entrepreneurs through all the steps of entrepreneurship and provide them with the necessary tools and knowledge to make the most of business opportunities.
If you want a personalized advice about the Crea y Crece Law and you want to know how it will affect you in your particular case, do not hesitate to contact us.
