The Crea y Crece Law is an important legislative reform approved in Spain in September 2022, aimed at promoting the creation and growth of businesses, particularly small and medium-sized enterprises (SMEs). Here are its main features:

Main Objectives

• Facilitate the creation of new businesses
• Enhance competitiveness and growth of Spanish SMEs
• Improve access to financing
• Reduce payment delays
• Simplify administrative procedures

Key Measures

Simplified Business Creation

• Allows the establishment of a Limited Liability Company (LLC) with a minimum share capital of just €1, down from the previous €3,000.
• Streamlines the creation process, making it faster and more accessible through the Information Center and Business Creation Network (CIRCE).

Combatting Payment Delays

• Denies public subsidies to companies that fail to meet legal payment deadlines (60 days).
• Establishes a National Observatory for Payment Delays.

Reducing Administrative Barriers

• Expands the list of economic activities exempt from licensing requirements.
• Modifies the Law on Guaranteeing Market Unity to encourage cooperation among public administrations.

Boosting Alternative Financing

• Promotes mechanisms such as crowdfunding, collective investment, and venture capital.
• Adapts crowdfunding regulations to align with European standards.

Mandatory Electronic Invoicing

• Introduces mandatory electronic invoicing for transactions between businesses and professionals.

Effective Date

The Crea y Crece Law came into effect on October 19, 2022, 20 days after its publication in the Official State Gazette on September 29, 2022.This law is part of Spain’s Recovery, Transformation, and Resilience Plan, within the context of the European Next Generation funds, and aims to significantly boost entrepreneurship and business growth in the country.