Notes on the draft Law on support to entrepreneurs

The draft Law on supporting entrepreneurs and their international

The Cabinet received a report on the Draft Law on supporting entrepreneurs and their internationalization. It is a complete and comprehensive law, which includes the work of virtually all ministerial departments, which aims to facilitate all business activity and business, from setting up businesses and its tax system, funding and support as the need for more fluid relationship between business and government, and, if necessary, provide easier when difficulties to solve business through various measures related to what is called "second chance ".
The Draft Law is one of the most important structural reform program of government reform. Complements the Royal Decree of 22 February 2013 on measures to support employment and stimulate entrepreneurial growth and job creation, through which they pass certain measures to support entrepreneurship, announced by the Prime Minister at the Debate on the State of the Nation.
The object of the Act is to support entrepreneurship and business, promote their development, growth and internationalization and promote entrepreneurial culture and an environment conducive to economic activity. It has a wide scope and horizontal entrepreneurs considering all natural and legal persons who develop a productive economic activity.

Support of entrepreneurship

The draft included a number of measures to promote a culture of entrepreneurship and facilitate your business activities.

Entrepreneurship in educational levels
In education, in line with the Law Project for the Improvement of Educational Quality will ensure that the curricula in primary and secondary responsibilities include entrepreneurship, will encourage a closer relationship to the university entrepreneurial culture and ensure that teachers have training in entrepreneurship.

Entrepreneur Limited
It creates a new figure commercial entrepreneurs Limited (ERL), through which the liability for business debts will not affect your residence, if their value does not exceed three hundred thousand euros. To properly protect creditors and traffic safety law, devised the appropriate publicity measures the registry disclaimer.
However, the limitation of liability does not apply with respect to debts public law, or when the employer had acted fraudulently or with gross negligence in fulfilling obligations to third parties.

Successive Limited Company Formation: new subtypes corporate
To reduce the initial cost of setting up a company, it allows the creation of companies with capital less than three thousand euros, a system identical to the limited liability company, unless certain specific conditions designed to protect the interests of third parties, including which are the limits on the remuneration of members and administrators, and joint and several liability of the partners in the event of liquidation.

Points of Attention Entrepreneurs
In order to expedite the start of entrepreneurial activity, creating service points in the Entrepreneur to be single windows through which you can perform the procedures for starting, exercise and cessation business activity. Point of Care Electronic Entrepreneur of the Ministry of Industry, Energy and Tourism will provide all the services under the Act. This item comes from the integration of multiple windows that exist today to support the start of the activity at the state level: Points of Advice and Top Processing, of single business and one-stop services directive . On the other hand, entrepreneurs may constitute a flexible, both as employers limited, as in corporate form, through simplified models and telematics systems.

Second chance: settlement payments
To facilitate the second chance, provides a mechanism for negotiation of business debts court, whether individuals or legal entities, similar to those existing in the surrounding countries. The procedure is very flexible and substance of court, shortly before a Registrar or a notary, although these are limited to appoint an independent professional ideal that drives the compromise and ensure that the requirements of publication and advertising Registered necessary to carry out the purposes pursued with good arrangement.
Is expected to be agreed quitaments up to 25 100 credits and delays of up to three years, except for loans of Public Law, where the unavailability of these only allow deferral of payment. Not be affected those loans and they have a very special guarantee as collateral, which may not, in the same way that public law, be affected by the settlement.
Finally, for self and for the new Entrepreneur Limited, provides for the extension of a two-year term that must exist between the notification of the first seizure diligence and completion equipment auction the contest or any other administrative means of disposal when affecting an autonomous residence, if foreclosure proceedings for debt or Social Security tax.

FISCAL MEASURES AND SECURITY SOCIAL SUPPORT THE ENTREPRENEUR

VAT cash
To alleviate the problems of liquidity and access to credit for businesses is created in the field of value added tax under the special criteria box.
Are eligible for this scheme taxpayers trading volume does not exceed two million, according to the scheme which taxpayers tax can opt for a system that delays the accrual and the resulting income statement and VAT affects the majority of their business operations until the time of payment, in whole or in part, to its customers.
However, taxpayers will be delayed, also, the deduction of VAT paid on their purchases until such time as payment to these suppliers.

Investment incentive benefits
Companies with a turnover of less than ten million can deduct up to 10 100 of the profits during the tax period that are reinvested in the economy.

Tax incentives for quality growth through business innovation
It allows deductions for R & D that can be applied in a year can recover through a unique system of Spain returns. This deduction is not subject to any limit on the gross income tax and, if applicable, shall be the payment of the tax credit for R & D, with a combined maximum of three million year, although with a discount rate compared to the amount initially planned deduction as long as they keep the R & D and employment.

Tax incentives for the transfer of intangible assets ("Patent Box")
Modifies the tax regime applicable to income from certain intangible assets. In this sense, it is intended that the incentive falls on net income derived from the donated assets and not the income from it. It expands on the other hand, the application of the tax to assets acquired under certain limitations and assumptions for transmission of intangible assets.

Tax incentives to "angels"
In order to encourage the uptake by businesses, new or newly established equity from taxpayers, in addition to financial capital, bring their business or professional knowledge appropriate to the development of the society in which they invest, local investors or "business angel", or those who are only interested in providing capital, "seed", establishes a new tax incentive on Income Tax of Individuals.
• Deduction of 20 100 in state income tax share on the occasion of the investment made on entering society. The maximum deduction is based twenty thousand Euros.
• Total exemption from capital gains out of the company, subject to reinvest in another new entity or newly created

Quote social entrepreneurs in multiple employment situation
Not overly penalize those employees listed in the general and should also contribute to another scheme when they realize a full-time alternative economic activity, reducing Social Security payments so that would alleviate the current penalty is incentives for multiple employment, stimulating new high in the Special Self-Employed.

MEASURES TO SUPPORT THE FINANCING OF ENTREPRENEURS
Amending the Bankruptcy Act in the matter of preconcursal refinancing agreements for two purposes: first, to regulate in a more comprehensive and flexible registration procedure for appointing experts; other hand, to include a clearer and more flexible rule of calculating the most passive sign the agreement and enforceable as minimum legal requirement for approval judicial discretion.
Additionally, it improves the regulatory framework of international bonds, adding clarity to the assets that serve as cover. Moreover, it creates a new instrument, the "good internationalization" in order to add more flexibility on the issue of having to hedge loans related to internationalization.

MEASURES TO PROMOTE GROWTH

Reduction of administrative burdens
In general, we review the business climate through improved regulation of economic activities. It also states that, to reduce the administrative burden faced by entrepreneurs, governments must make sure to remove at least one administrative burden for each entering and always equivalent cost .
Reduce the statistical burden, so as to ensure that employers do not have to answer any more of a survey by the National Institute of Statistics during the first year of activity, if they have less than fifty employees.
In labor, extending the circumstances in which SMEs can directly assume the risk prevention in the case of employers with a single workplace to twenty employees.
It also eliminates the requirement that companies have at each workplace, a guestbook available to officials of the Inspectorate of Labour and Social Security officials and technical skills to carry out actions testing in the prevention of occupational hazards. Instead, it is the Labour Inspectorate which is responsible for keeping this information electronically.
Moreover, it opens the possibility that employers electronically legalized its books required in the Commercial Register.
In the field of service activities, modifying Law urgent measures to liberalize trade and certain services from 26 December 2012 to extend the threshold of maximum area establishments are exempt municipal license and how to expand the list of exempt activities apply for a municipal license.
In the field of accounting, interpreted the requirements of economic and financial information companies. Elevated thresholds leading to the formulation of the Abbreviated balance, to expand the number of companies that can make the balance, memory and the statement of changes in equity and shortcuts that make exempt from state cash flows.

Removing barriers to the access of entrepreneurs to procurement
First contact for small entrepreneurs engaged in the same activity, including the possibility that employers may be a high in the Official Register of Tenderers and Classified Companies of the State.
Second, elevated thresholds for the requirement of classification works contracts and service, which is still an obstacle for many companies, especially for those smaller or newly created, as it able to meet all the requirements for the appropriate classification.
In particular, works contracts the threshold rises to € 150,000, from 350,000 euros to 500,000 euros and 80,000 euros for service contracts, from 120,000 to 200,000 euros.
Thirdly, it is expected that the guaranteed contracts could constitute work by withholding the money and shorten deadlines for the return of collateral, from twelve months to six months in case the bidder is small and medium enterprises.
Finally, in order to combat delinquency is reduced from eight to six months the period of delay to request termination of the contract if the bidder is an SME, and includes a new article to establish a greater control payments to contractors bidders have to subcontractors.

Encourage the internationalization COMPANY AND THE SPANISH ECONOMY

Institutional framework and support instruments for internationalization
Through the draft, strengthening the institutional framework of support internationalization, as well as some of the main financial instruments to support internationalization.
Biennially, the Ministry of Economy and Competitiveness prepare a Strategic Plan for Internationalization of the Spanish economy, including sectoral and geographical priorities and action plans of the agencies with jurisdiction in the matter. Establish a system of evaluation and monitoring instruments that make up the plan, the results will be public and for future regulatory changes and management.
Moreover, it enhances the performance of the external network and territorial Ministry of Economy and Competitiveness, and strengthened the role of ICEX Spain Investment and Export agency to boost internationalization and competitiveness of Spanish companies in all stages of this process.
Regarding reform of financial instruments to support internationalization, improved the design of the Fund for Foreign Investment (fiexed), the Fund for the internationalization of the company (FIEM) and the Convention of Reciprocal Interest Adjustment (CARI).
Finally, develop the necessary mechanisms for Spanish companies have greater access to open projects in competition for international financial institutions in other countries.

Attract talent and investment: new visa regime and residence permits
It facilitates and streamlines the permitting of residence for reasons of economic interest, through a procedure faster and faster, before a single authority to individuals who are classified as:
One. Investors who make a significant financial investment or business projects aimed at accredited and considered of general interest, for example, its impact in creating jobs or their contribution to scientific innovation and / or technology.
Two. Entrepreneurs respect of an activity innovative special economic interest. We evaluated primarily employment creation, as well as the professional profile of the applicant's business plan or value added for the Spanish economy.
Three. Highly qualified staff:
- Staff management, highly qualified or part of a business project of general interest.
- Postgraduate universities and business schools recognized.
- Professionals who wish to perform research, development and innovation in public or private entities.
4. Intra-corporate transfer: foreign travel to Spain as part of an employment relationship, professional or vocational reasons, for a period equal to the transfer.

PROJECT "employee 3"

In addition, the Cabinet has approved an agreement to promote and expedite the procedures for starting the business. The "employee 3" takes advantage of the collaboration between government, new technologies and regulations responsible statements, which replaces the previous licensing regime to control afterwards.
"Employee 3" is a system of online processing for the establishment and implementation of a business. It is a platform developed with the participation of the general administration of the State, the regions and local authorities, represented by the Spanish Federation of Municipalities and Provinces.
The platform allows the necessary formalities with the three administrations simultaneously as the system sends statements to councils responsible.
"Employee 3" using existing technology resources in government, so its implementation poses no additional cost: Information System of the Ministry of Industry, Energy and Tourism; SARA network, which connects all the authorities of Spain, and Portal Local Bodies.