ENISA Emerging Enterprise Certification: What are the advantages for your business?

ENISA’s start-up certification is a recognition granted by the Official Credit Institute (ICO) to start-ups that meet a series of requirements. These requirements are based on the size of the company, its age, its activity and its growth potential.

Companies that obtain the ENISA start-up certification can benefit from a number of advantages.

Ten advantages

1. Reduction of the corporate tax rate to 15% for a period of 4 years from the first year in profit, extending to 7 years in the case of technology-based companies.
2. Increase of the deduction for investment in new companies to 50% and of the maximum base from 60,000 to 100,000 euros.
3. Tax debt deferrals without interest and without the need to guarantee for a certain period of time.
4. Exemption from making payments in instalments of corporate income tax.
5. Elimination of certain registration fees for the incorporation of a new company.
6. Social Security contributions: Three-year subsidy.
7. 50,000 per year exemption, when there is an Employee Stock Option Programme (ESOP)
8. No need for foreign investors to obtain a NIE for the first three years.
9. They are exempted from the obligation to request dissolution due to qualified losses or a situation of equity imbalance (share capital less than 50% of net worth).
10. Access to ENISA funding programmes and visibility and recognition in the market.

Brief summary

The reduction of the corporate tax rate is one of the most important advantages of ENISA’s start-up certification. This reduction can lead to significant savings for companies, especially for those in their early stages of growth.

Tax debt deferrals and exemptions from corporate income tax payments can also be beneficial for start-ups, as they offer greater financial flexibility.

The elimination of certain registration fees for the incorporation of a new company can be an important advantage for start-up companies.

Access to ENISA funding programmes is another important advantage of start-up certification. ENISA offers a number of funding programmes aimed at start-ups, such as the ENISA Emprendedor programme, the ENISA Emprendedor Internacional programme and the ENISA Emprendedor Digital programme.

Visibility and recognition in the marketplace is another advantage of start-up certification. Certification can help start-ups become known and attract the attention of potential investors, customers and partners.

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Regulatory compliance advice for startups

Compliance advice for startups is essential to ensure that the company operates in a legal and ethical manner. Some key issues that need to be addressed include:

Order PCM/825/2023

Order PCM/825/2023 establishes the following criteria for the certification of start-up companies:

• General requirements:

  • The company must be less than 7 years old.
  • The company must have an annual turnover of less than EUR 5 million.
  • The company must have a staff of less than 50 people.

• Specific requirements:

  • The company must have a viable business plan.
  • The company must have significant growth potential.
  • The company must be committed to innovation and technology.

The certification procedure begins with the company’s application to ENISA. The application must include the documentation accrediting compliance with the requirements established in the Order.

ENISA will evaluate the application and issue a decision within 3 months. The resolution will be favourable if the company meets all the requirements.

Certification shall be for a period of 2 years, and may be renewed for additional 2-year periods.

In summary, Order PCM/825/2023 establishes a regulatory framework for the certification of start-ups in Spain. Certification can be a valuable tool for start-ups seeking to grow and develop.

An additional piece of advice

Order PCM/825/2023, of 20 July, regulating the criteria and procedure for the certification of start-ups that give access to the benefits and specialities recognised in Law 28/2022, of 21 December, on the promotion of the start-up ecosystem, is a complex document that requires expert interpretation.

M&A advisors and corporate lawyers with experience in startups can help startups understand the requirements of the PCM Order and prepare the necessary documentation for certification. In addition, they can advise startups on how to take advantage of the benefits of certification, such as reduced corporate tax rates, access to ENISA funding programmes and visibility and recognition in the market.

In particular, M&A advisors and corporate lawyers with experience in start-ups can help emerging companies to:

• Understand the requirements of the PCM Order

The certification process for startups can be complex and requires a detailed understanding of the requirements set out in the PCM Order. M&A advisors and commercial lawyers with experience in startups can help startups understand the requirements and prepare the necessary documentation for certification.

• Prepare the necessary documentation for certification

Applying for startup certification requires extensive documentation, including information about the company, its business, its growth potential and its commitment to innovation and technology. M&A advisors and corporate lawyers with experience in startups can assist startups in compiling and preparing the necessary documentation for certification.

• Advise start-ups on how to take advantage of certification benefits

Startup certification offers a number of advantages, such as reduced corporate tax rates, access to ENISA financing programmes and visibility and recognition in the market. M&A advisors and corporate lawyers with experience in startups can help startups understand how to take advantage of these benefits and maximise their impact on the business.

In short, having M&A advisors and corporate lawyers with experience in Startups is essential for startups to be able to interact with ENISA and effectively enjoy the benefits of the PCM Order and the ENISA certificate.

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