Law for the Creation and Growth of Companies
The Law "Crea y Crece" or Creation and Growth of Companies, which will affect companies significantly with measures such as the use of the Electronic Invoice in commercial relations, has already been approved. This law will come into force on September 28th (Law 18/2022) and will be published in the BOE on November 8th. This law is part of the Recovery, Transformation and Resilience Plan. The Government affirms that this law will help in the creation of companies since it will eliminate regulatory obstacles and will help the growth and expansion of these companies.
Fight against delinquency by means of the Electronic Invoice
One of the biggest problems that companies currently face is late payments in commercial transactions, as they cause liquidity shortages and limit growth.
To fight against this, the Law for the Creation and Growth of Companies makes it mandatory to issue and send electronic invoices in all commercial relations between companies and freelancers. This operation, in addition to being a step forward in the digitalization of the business network, allows the traceability and control of payments through access to reliable, systematic and agile information.
As regards the mandatory application of the law, it is envisaged that smaller companies will have a transition period of two years. During this period, these companies should take advantage of the opportunity to implement electronic invoicing in their ERPs. For larger companies, this adaptation period will be much shorter, and they will have to assume the new operations in a first stage.
Together with this measure, the State Observatory of Private Delinquency will be created, which will carry out a follow-up and analysis of the data on the payment terms of the companies. This entity will publish annually a list of companies considered to be in arrears (companies that have not paid more than 5% of their invoices and whose total amount of unpaid invoices exceeds €600,000).
Commitment to telematic procedures and less bureaucracy.
Measures such as being able to set up a Limited Liability Company with a capital of 1 euro, instead of the 3,000 required until now, are designed to reduce economic costs.
Along the same lines is the creation of CIRCE (Information Center and Business Creation Network), which will facilitate the telematic incorporation of companies. A more agile and economic system that will reduce deadlines and notary and registry costs.
In order to reduce bureaucracy when creating a company, unnecessary regulations will be eliminated and more agile procedures will be established.
Another important point is that the catalog of economic activities exempt from licensing will be expanded, in order to liberalize trade.
Of course, if your company does not yet have electronic invoicing, has it but does not comply with the Law for the Creation and Growth of Companiesor you simply have doubts, at Dynasoft Group we will be happy to help you.
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