Last September, the Plenary of the Congress of Deputies definitively approved the new regulations within the Recovery Plan, which aims to promote the creation of businesses, eliminate regulatory obstacles and fight against late payment.

It is no secret that excessive bureaucracy, high taxes and late payments slow down entrepreneurship and business growth. Although in recent years the process of setting up a business has become significantly simpler and cheaper, reducing the costs and time required for paperwork, authorisations and licences, as well as cutting the rate of late payments, remains an unfinished business.

A World Bank report from 2020, which ranked the cost of starting a business in different countries around the world, placed Spain at the European average, but twice the cost of France and Poland, and three times the cost of Portugal. Regarding the ease of doing business, it placed Spain in 30th place out of 190 countries analysed, far behind the weight of its economy in the world.

In this context, and at a time when entrepreneurship is more complicated than ever due to the current economic situation, the new Law for the Creation and Growth of Companies, better known as the “Create & Grow” Law, was finally approved on 15 September in the Spanish Congress of Deputies and aims to address and eliminate some of these problems by facilitating the process of business creation, reducing costs and fighting against late payments.

New measures to reduce late payments

The regulation, which has received broad support in the Congress of Deputies, includes measures proposed by PIMEC, the employers’ association representing micro, small and medium-sized enterprises and the self-employed in Catalonia, and the Multisectoral Platform against Late Payment (PMcM), to prevent late payments in commercial transactions, which is one of the causes that have the greatest impact on the liquidity and profitability of businesses.

In this respect, the obligation to issue and send electronic invoices is extended to all commercial relations between companies and the self-employed. On the other hand, the aim is to guarantee greater control of payments and avoid long payment periods, compelling contractors to specify in their work certifications that payments made to their subcontractors comply with the legal payment periods.

In addition, a State Observatory on Private Delinquency has been created to monitor data on payment deadlines and to publish an annual list of defaulting companies. Although the new regulation excludes businesses that do not comply with the Late Payment Act from access to public subsidies, it will not include a penalty regime for companies that fail to comply with legal payment deadlines, as some political groups had requested.

Eliminating bureaucracy and facilitating financing

With the aim of reducing economic costs, simplifying the procedures for setting up a business and encouraging entrepreneurship, the possibility of creating a Limited Liability Company with a share capital of just one euro is contemplated, instead of the 3,000 euros required until now.

In terms of procedures, notary fees and the time required to set up a business electronically, through the one-stop-shop of the Business Creation Information and Network Centre (CIRCE), have been reduced. Likewise, the law on trade liberalisation measures is amended, increasing the number of economic activities exempt from licensing.

In addition, the law introduces more flexibility in the field of crowdfunding, adapting to European regulations and expanding the type of businesses in which these entities can invest, including financial companies such as 11Onze, with a high technological component.

At 11Onze, we also want to help businesses reduce costs by offering an account that allows them to automate processes in a simple and effective way, managing their capital or exchanging currencies at the best price.

If you want your business to make a giant leap, use 11Onze Business. Our business and freelancer account is now available. Find out more!