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The Economy Ministry opens a consultation to encourage business start-ups, experts call for less bureaucracy and more legal certainty

| News | Corporate Law and M&A

Javier Bustillo analyzes the public consultation, which is open until March 19

The public consultation carried out by the Ministry of Economic Affairs and Digital Transformation to encourage the creation of companies in Spain is open until 19 March.

"These measures are intended, as stated in the background of the consultation, to boost productive investment, innovation and modernisation of companies and also to modernise the business restructuring regime to improve the future viability of companies".

In the opinion of Javier Bustillo, partner in Andersen's M&A area, companies can grow, but they need certainty and legal security, so any measure along these lines is always welcome.

From his point of view, it is not so much about giving or offering things to companies, but rather allowing them to develop their business activity within a simple, clear, predictable and stimulating legal-economic framework, he says.

 Bustillo recalls that he does not believe that it is so much a question of allowing a share capital of 1 euro, since the law on support for entrepreneurs already contemplates the possibility of setting up a limited company of successive formation and the use that has been made of this format has been very residual.

This jurist is aware that another problem is the small size of companies, an issue that needs to be resolved in order to make them larger and more competitive.

"There are certain business movements that have to happen because of the desire or ambition of entrepreneurs, as there are many issues that cannot be solved with new regulation".

Bustillo agrees with the experts on the need for a more active fight against business delinquency and on the financing of SMEs. He considers that, for SMEs and the self-employed to have access to alternative markets, they must be attractive to potential investors, either because of their current situation or because of their future business development plan.

This jurist reminds us that venture capital investment is growing every year and will continue to do so because in Spain things are being done very well and in a very professional manner, but that does not mean that it will be a tool accessible to any Spanish company.

The full article can be read in Confilegal

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