The Spanish government has drafted proposals aimed at bringing in a number of resourceful changes to opening a business in Spain which will reduce both the financial and administrative responsibilities when setting up a new business. The reality of the double blow Covid-19 and that of Brexit to cross-border trade has led to businesses, both in the UK and in Spain, having to find new routes to trade without the unwieldy administrative burden that they now face.
Following a public consultation, the Ministry of Economic Affairs and Digital has put forward a number of innovative suggestions to ensure that start-up businesses have the easiest entrance to commercial life by reducing the capital requirement to start a business as well as simplifying and speeding up the process. The new proposals include:
- The capital requirement reduced from €3,000 to just one euro
- The process of setting up a new business can be conducted online for EU Member States. Whilst this does not apply to non-EU Member States, there still may not be the need to a physical presence as an Ordinary Power of Attorney can be granted to your nominated attorney, often your lawyer, who can act in your stead.
- The whole process to be completed within ten days.
Gonzalo Butori, an associate, commented "it is expected that the new measures will be approved and welcomed. No country has escaped the effects of the pandemic and it is only by facing the situation and taking creative resourceful steps to attract commercial activity that recovery will be achieved" he further commented, "businesses must act fast to recover their position as the market will shrink before it expands again and only the agile forward-thinking businesses will survive."
Giambrone is well placed to assist businesses in the UK to start up in Spain, our offices in Spain can advise and support new businesses in Spain and support those who wish to recover their cross-border trade via a different business model. As well as acting as an attorney to deal with all the company set up and can advise on employment law, tax, funding, venture capital, cross-border commercial contracts, debt collection and many other issues. All businesses need sound foundations that will withstand any difficulties that are encountered.
Spain's new proposals include the levelling of the playing field between small to medium businesses (SME) and the larger organisations as currently SMEs are hampered by a number of barriers that do not apply to large companies, such as the imbalance of power between large and small companies which sees SMEs having to accept the longer payment terms imposed by larger companies or face losing the business of the larger entity.
Prior to the implementation of the new proposals, the Ministry of Economic Affairs and Digital has commissioned a public consultation to gather the opinions and contributions of the economic operators related to all areas of the proposals which is open until 19 March 2021. This will provide for the collection of opinions and suggestions from all related sectors and will culminate in a Draft Law that will be raised to a public hearing where the proposals will be discussed and a final draft will the thrashed out.
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