Rules to make starting companies easier and paying faster

Automatic summary, not yet reviewed

1. A limited liability company can now be created with just one euro of capital, instead of the 3,000 euros required until now. If the capital is below 3,000 euros, rules apply to protect creditors, such as setting aside 20% of profits as a legal reserve.
2. Notaries and intermediaries must inform founders of limited liability companies about the advantages of using the Entrepreneur Service Points (PAEPAE Puntos de Atención al Emprendedor (Entrepreneur Service Points): offices and virtual points that help people start companies and process documents.) and the CIRCECIRCE Spanish government online system that lets you create a company and complete the initial paperwork over the internet. online system to set up the company and complete the initial paperwork.
3. All notaries must be available through the Electronic Notary Agenda and cannot refuse a company formation process started through CIRCE unless there is a justified reason, which they must report.
4. The law guaranteeing the single market is strengthened: anyone can file a complaint with the Secretariat for the Internal Market against barriers to economic activity, and an Observatory of Good Regulatory Practices is created.
5. The list of commercial activities exempt from licenses is expanded, adding new groups such as cleaning, courier, security and market research services.
6. All businesses and self-employed professionals must use electronic invoices between themselves. Large companies (with annual billing above eight million euros) will have one year from the regulatory development to adapt, and the rest will have two years.
7. To fight late payments, companies that do not pay on time can be excluded from public subsidies above 30,000 euros, and a State Observatory on Private Late Payments will be created, publishing an annual list of late-paying companies.
8. CrowdfundingCrowdfunding Participatory financing: web platforms that connect people looking for money for a project with people who want to invest. platforms are adapted to European rules, with the CNMV as the supervising authority, and venture capital and collective investment rules are made more flexible to make financing easier for companies.

Who it affects

• People who want to create a limited liability company: They can set it up with just one euro of capital, faster and fully online.
• SMEs and self-employed workers: They get more time to adopt electronic invoicing and are better protected against late payments by large companies.
• Large companies: They must adopt electronic invoicing sooner and pay suppliers on time or lose access to subsidies and face sanctions.
• Crowdfunding platforms and venture capital managers: They must adapt to the new European regulation and get more flexible rules to operate.
• Consumers and citizens in general: They can complain about barriers to economic activity before the Secretariat for the Internal Market.

Words worth knowing

CIRCE

Spanish government online system that lets you create a company and complete the initial paperwork over the internet.

PAE

Puntos de Atención al Emprendedor (Entrepreneur Service Points): offices and virtual points that help people start companies and process documents.

Morosidad comercial

Commercial late payment: paying suppliers later than the law allows.

Crowdfunding

Participatory financing: web platforms that connect people looking for money for a project with people who want to invest.

Unidad de mercado

Internal market principle: a company should be able to operate the same way across all of Spain, without barriers between autonomous communities.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries