Starting an economic activity and incorporating a limited liability company for this purpose is now within the reach of many more people, as the capital contribution limits are reduced, as well as the costs and time to have it operational.
The Crea y Crece Law aims to facilitate the creation of companies (corporations) by reducing the bureaucratic procedures and the incorporation time to 10 days, without having to make a deposit of 3,000 euros for it.
NOW FASTER AND DOES NOT REQUIRE CAPITAL CONTRIBUTION
To incorporate a Limited Company (with the traditional method), it is mandatory to make a minimum capital contribution of €3,000. This money remains blocked in the bank account until the deed is formalized, which can sometimes take weeks. The fact of having to make this investment at the beginning can sometimes limit the start of a project. By eliminating this requirement, this financing is no longer necessary, giving free rein to entrepreneurship through companies.
On the other hand, the time to have a business operational is reduced to 10 days. The point where it takes the longest in the bureaucratic procedures is in the notary signature and the subsequent registration of the company in the Commercial Registry. Sometimes it can take up to 4 weeks or more to complete these formalities. The main reason is usually the difficult availability of these professionals.
incorporation of a limited liability company without physical presence
The notaries have committed to provide service through video conference, being necessary for the signature the Digital Certificate, without having to appear physically.
This point is extremely important precisely for those foreign investors who wish to have a business in Spain. They will save a lot of costs by not having to travel, as well as time to get the business up and running.
This eliminates bureaucratic hurdles and reduces the waiting time to register an activity through procedures that allow the creation of companies entirely digitally.
To do this you simply have to request an appointment through the citizen portal, which is the Electronic Headquarters of the notary’s office. From there you will be assigned a notary who is free and with whom you will initiate a video conference without the need to physically go to the office.
This will verify the veracity of the identity of the founding partner or partners. In addition, he will check the contribution of the capital required for the incorporation of the company according to the law and will review that all the points of the statutes are correct. Once this process is finished, and giving the approval, the notary will send the deed telematically to the Mercantile Registry and a copy of it to the founding partner, digitally certified.
REQUIREMENTS TO INCORPORATE A LIMITED LIABILITY COMPANY
Self-employed persons who have opted to incorporate a limited liability company under this law must comply with certain obligations:
- They must set aside 20% of their profits to cover the €3,000 share capital of a limited liability company.
- If they have to liquidate the business and have not been able to accumulate that amount (€3,000), the partners must respond until they reach it, since the Share Capital is established to protect the creditors.
- The incorporation formalities must be carried out through CIRCE (Information Center and Business Creation Network).
- Electronic invoices must be issued and sent in all commercial relations with companies and self-employed workers, which will guarantee greater traceability and control of payments.
- Companies that do not comply with the payment deadlines established in the Delinquency Law will not be able to access a public subsidy or be a collaborating entity in its management.
If you need more information about this process, you can request it from HERE. Thank you
