In a bold and long-awaited step forward, Spain has taken a momentous turn in its business landscape with the approval of the Create and Grow Law. This new regulation, popularly known as the 'Create and Grow Act', promises to radically change the way companies are established and grow, paving the way for an era of agility, efficiency and advanced technology in the business world.
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Business agility: overcoming obstacles
The Create and Grow Law stands as a beacon of progress, after a year of anticipation and the final approval of the Congress of Deputies. The main purpose of this law is to clear the way for the creation of new companies, eliminating regulatory barriers and streamlining procedures. Here's a look at how it's revolutionizing the business world:
Extension of license exemptions
The new law expands the catalog of economic activities exempt from licenses, incorporating those considered harmless by at least one autonomous community. This reduces bureaucracy and speeds up the business creation process.
Limited liability companies with minimum capital
The Create and Grow Law allows the creation of Limited Liability Companies with a share capital of only one euro, compared to the 3,000 euros required previously. This harmonizes Spain with international standards and opens the door to greater business diversity.
Simplified and telematic company constitution
The standard introduces specific reforms to facilitate the creation of companies in a quick and agile manner through the Information Center and Business Creation Network (CIRCE). This allows a simpler and more efficient process for entrepreneurs.
Stimulus for alternative financing
Recognizing the importance of financing in business growth, the law makes alternative financing mechanisms more flexible, promoting tools such as crowdfunding, collective investment and venture capital.
Electronic Billing: a bold step towards efficiency
The Create and Grow Law not only focuses on business agility, but also addresses one of the most persistent challenges: delinquency. The adoption of the Electronic invoice emerges as a fundamental pillar in this fight against late payment and improving efficiency:
Widespread use of the Electronic Invoice
The regulations establish the generalization of the use of electronic invoices in transactions between businessmen and professionals. This digital approach not only improves efficiency but also acts as a crucial tool in the fight against late payments.
Detailed implementation
The Draft Royal Decree Project offers concrete details on the adoption of electronic invoices. It defines who is obliged to use it, the implementation deadlines and the electronic billing system.
Drive for transparency
The electronic invoice guarantees greater traceability and control of payments, providing companies with accurate information on payment terms and promoting a culture of transparency in commercial relationships.
Looking to the business future
As the Create and Grow Law prepares for its final approval in parliament between the months of August and September, Spain's business landscape is full of expectations and excitement. The public exchange platform, FACeB2B, stands as a key driver in the implementation of these bold reforms. With the consultation period open until July 10, companies are looking forward to a future where digitalization and business efficiency are the norm.
The Law Create and Grow Not only does it represent a set of legal reforms, but it is a manifesto for business transformation in Spain. As the country moves towards an era of agility and transparency, businesses have the opportunity to flourish in a more enabling and dynamic environment. With electronic invoicing leading this revolution, the Crea y Crece Law is destined to pave the way to a future full of opportunities and sustainable success for companies throughout Spain.
A detailed look at the business evolution Driven by the Create and Grow Law
June 15, 2023 marked a significant milestone on the path of business transformation in Spain, as the long-awaited Draft Royal Decree Project was released. This draft, a fundamental piece in the implementation of the Create and Grow Law, provides detailed information on two crucial aspects: the Electronic Invoice and the implications of this innovative law.
Who is required to invoice electronically and when
The first issue addressed by the draft is the obligation to invoice electronically and the conditions under which it will be applied. Although in the first publication it was indicated that all companies and self-employed workers will be required to issue, send and receive electronic invoices in B2B transactions, the new draft adds an important nuance. The electronic invoice will not be required if any of the parties involved is not established in Spanish territory. In addition, simplified invoices are excepted.
Once this regulatory framework is approved, companies and self-employed workers with an annual turnover of more than 8 million euros must comply with this measure within a period of 1 year. On the other hand, other companies and self-employed workers will have a period of 2 years for its implementation.
What will the Electronic Billing System be like?
The electronic billing system in Spain will be established in an innovative way, incorporating both private exchange platforms and a public solution. The latter will be managed by the AEAT (State Tax Administration Agency) and will also function as an invoice repository. This will allow electronic invoicing to be carried out through both methods or through a combination of both.
However, in cases where the exchange of electronic invoices is carried out exclusively through private platforms, the issuer must send a copy of each invoice in Facturae syntax to the public solution. In addition, during the first 12 months after the entry into force of this measure, those required to issue electronic invoices must attach a PDF document to ensure readability.
Regulatory Development Details
The draft provides a structured and detailed approach to regulatory development, outlining the following key aspects:
- Companies and professionals who choose the public solution must use the Facturae syntax.
- All electronic invoices must carry a unique code that includes the issuer's tax identification, the invoice number and series, and the date of issue.
- The obligation to report on the status of invoices will come into force at different times depending on the annual turnover: 36 months after the publication of the Royal Decree for companies with turnover greater than 6 million euros and 48 months for professionals with turnover less than 6 million. millions of euros.
- The AEAT will enable individual and mass downloads of invoices for issuers, receivers and representatives through manual and automatic methods.
- Voluntary communication of delays in payment or non-payment of invoices will be permitted by the AEAT.
- A free application or form will be developed for small businesses and professionals, making it easy to generate electronic invoices.
- Guarantees of interoperability between the public solution and private platforms, ensuring the integrity and authenticity of the invoices.
In addition, a monitoring system will be implemented through the AEAT to ensure compliance with the regulations, with the State Observatory of Private Delinquency issuing annual reports on non-compliance.
Next steps and opportunities
The path to the final approval of the Create and Grow Law in parliament is outlined, with a time estimate between August and September. The public exchange platform, FACeB2B, is emerging as a crucial pillar in the successful implementation of these reforms. In the meantime, the draft remains in a consultation period, giving interested parties the opportunity to contribute and shape Spain's business future.
In summary, the Draft Royal Decree is a detailed roadmap towards a business evolution driven by the Create and Grow Law. With a focus on electronic invoicing and a strong regulatory structure, Spain is laying the foundation for a more efficient, transparent and successful business environment.
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