Requirements to be an “Emerging Company” in Spain: Complying with the Startup Law ✔️
The Startup Ecosystem Promotion Law, also known as the Startup Law, establishes the essential requirements that a company must meet to be considered an “emerging company” and thus be able to access the tax benefits and other privileges that this new legislation provides. In this article, we will explore in detail the requirements you must meet, highlighting the importance of having the specialized advice of AGL to guide and streamline the process. 🚀
Key Requirements to be an “Emerging Company” ✅
Location in Spain: To qualify as an emerging company, the company must have its registered office, social domicile, or permanent establishment in Spain. This ensures that local companies can benefit from the Startup Law. 🏢
Less than 5 or 7 years of age: The time of existence is a determining factor. The company must be less than 5 years old, except in the case of deep tech or biotechnology companies, where the limit is extended to 7 years. The latter are defined as “biotechnology, energy, industrial companies, and other strategic sectors or those that have developed their own technology, designed entirely in Spain.” 🧪
Limited turnover: The company’s turnover must not exceed 10 million euros. This limitation ensures that emerging companies are primarily startups and growing businesses. 💰
No distribution of dividends or returns in the case of cooperatives: The company must not have distributed dividends or returns in the case of cooperatives. This aligns with the goal of reinvesting profits for the growth and development of the company. 💼
Not listed on a regulated market: Emerging companies must not be listed on a regulated market. This requirement focuses on ensuring that the benefiting companies are primarily those that have not yet reached the maturity necessary to be listed on the stock exchange. 📈
Majority of the workforce with employment contracts in Spain: The majority of the company’s workforce must have employment contracts in Spain, with a minimum percentage of 60%. This contributes to promoting local employment. 👥
Independent origin: The company must not have emerged from a merger, spin-off, or transformation operation of companies that do not have the consideration of emerging companies. This ensures that emerging companies are genuinely new and not mergers of existing companies. 🔄
Innovative character and growth potential: One of the most important requirements is that the company must have an innovative character and high growth potential. A company is considered innovative when its purpose is to solve a problem or improve an existing situation through the development of products, services, or processes that are new or substantially improved compared to the state of the art and that entail a risk of technological, industrial, or business model failure. 🚀
AGL’s Assistance in the Process ✔️
Meeting these requirements can be a complex and challenging process. However, having the support and specialized advice of AGL can make this process smoother and more efficient. Our experts can guide your company in the presentation of the necessary documentary evidence before ENISA, the entity responsible for approving or rejecting the submitted application.
AGL has extensive experience in coordinating with specialized consultancies in obtaining accreditation as an emerging company. Our goal is to help you make the most of the benefits of the Startup Law and position your company as a leading emerging entity in the market. 🤝
Conclusion 📋
In summary, the requirements to be considered an “emerging company” in Spain are clear and specific. Meeting these requirements is essential to access the benefits provided by the Startup Law. The specialized advice of AGL can be your strategic ally in this process, ensuring that your company meets the requirements and can make the most of the opportunities offered by this new legislation.
If you want more information or need guidance to start the accreditation process as an emerging company, do not hesitate to contact us. At AGL, we are here to help you achieve your business goals and make the most of the benefits of the Startup Law. Contact us now and let’s start working together towards success! 🚀📞