New measures for entrepreneurs
Today 19th October 2022, the Law 18/2022 of 28th September, on the start-up and growth of companies comes into force, which amends the revised text of the Capital Companies Law and which introduces the novelty that limited liability companies will have a minimum share capital of one Euro, as opposed to the 3,000 Euros that were compulsory until now.
This measure significantly reduces the costs and formalities involved in setting up new companies, as well as the initial outlay of capital, promoting entrepreneurship, the creation of new companies and boosting the economy.
As a result, new companies that are set up with a share capital of less than 3,000 Euros will have special obligations to safeguard the rights of potential creditors:
- A sum equal to at least 20 per cent of the profit must be transferred to the legal reserve until this reserve together with the share capital reaches the amount of three thousand euros.
- In the event of voluntary or compulsory liquidation, if the company's assets are insufficient to meet the company's obligations, the shareholders shall be jointly and severally liable for the difference between the amount of three thousand euros and the amount of the subscribed capital.
This is a new opportunity for entrepreneurs and, in particular, to facilitate consistency in the ownership of Industrial Property rights.
Please do not hesitate to contact us for any further information or queries you might have.
Attorney at Law