Certifying as a Startup

A startup or emerging company is defined as any legal entity that fulfills, among other criteria, the following requirements:

• Being a newly established company or having a maximum of five years since its incorporation, and seven years in the case of sectors such as biotechnology, energy, industrial, among others.
• Having its registered office or a permanent establishment in Spain.
• Having a majority percentage of the workforce under contract in Spain.
• Developing an innovative and scalable entrepreneurial project.
• Not being listed on a regulated market or having distributed dividends.
• The turnover should not exceed ten million euros.

Certification is a crucial process enabling eligibility for the tax and social benefits outlined in the Startup Law. 

This certification holds validity across all authorities and entities required to acknowledge such benefits. 

The certification as an emerging company is conferred by ENISA

The certification process incurs no cost for the companies applying for it.

No, only companies formed as capital companies (SA, SL, SAL, SLL, etc.) and cooperatives that meet the established requirements for emerging companies in the Law can undergo certification.

Yes, provided they meet the criteria outlined in the Law for Fostering the Ecosystem of Emerging Enterprises, also known as the Startup Law, and are appropriately registered in the Cooperative Registry.

The assessment of innovative and scalable entrepreneurial status will take up to 3 months from the date the company submits all information for the certification request, including any additional information requested following ENISA's analysis.

The calculation of the maximum resolution period will pause when the applicant is asked to address deficiencies in their application or provide essential documents. 

This timeframe becomes effective six months after the enactment of this Law.

According to the new Startup Law, you are indeed allowed to be a shareholder in one or more certified companies.

The certification's validity depends on any of the following situations:

• If any of the requirements stipulated in Article 3, and particularly at the end of the five or seven years from the creation of the emerging company, are no longer metSe extinga la empresa antes de ese término.
• If it is acquired by another company that does not have the status of an emerging company
• If the annual turnover of the company exceeds the value of ten million euros
• If it carries out an activity that results in significant environmental damage according to Regulation (EU) 2020/852 of the European Parliament and the Council of June 18, 2020, establishing a framework for promoting sustainable investments and amending Regulation (EU) 2019/2088
• If shareholders, whether directly or indirectly owning a stake of at least 5% of the share capital, or administrators of the emerging company have been conclusively sentenced for the criminal offenses specified in Article 3.3.

The analysis of the degree of innovation of the entrepreneurial project and the scalability of the business model will be based on, at a minimum, the following criteria:

• Innovation Level: Recognition for securing public funding in the last three years without revocation due to inadequate execution. Additionally, the ratio of research, development, and technological innovation expenses to the company's total expenses over the preceding two fiscal years (or one year for companies less than two years old) will be assessed.
• Market Attractiveness: Consideration of sector supply and demand, traction generation, and strategies for user or customer acquisition.
• Company Life Stage: Assessment of the implementation of prototypes, attainment of a minimum viable product, or the market introduction of the service.
• Business Model: Evaluation of the scalability of user numbers, transaction volumes, or annual revenue.
• Competition: We will assess companies operating in the same domain or sector, taking into account how the business stands out from its rivals
• Team: Assessment of the team's experience, education, and track record.
• Dependency on Suppliers, Providers, and Lease Agreements: Consideration of relationships with other economic entities.
• Customers: Evaluation of the volume of the company's customer or user base.
• Absence of a business model that raises reasonable doubts about potential reputational, regulatory, ethical, or speculative risks.
   

Being registered as an emerging company in the Commercial Registry or the relevant Cooperative Registry is both a necessary and sufficient condition to access the benefits and special provisions outlined in this Law. 

ENISA will furnish the corresponding certification documentation confirming compliance with all necessary requirements for obtaining the status of an emerging company directly to the Commercial Registry or the applicable Cooperative Registry.