Being certified as an emerging company does not entail any type of cost for the applicant companies. In addition, the certification will be valid against all Administrations and entities that must recognize it.

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What is the purpose of being certified as a start-up?

The main objective of the certification is to recognize those companies that are committed to innovation and that meet a series of specific requirements. Enisa, an entity under the Ministry of Industry, Trade and Tourism, will be responsible for reviewing compliance with these requirements (indicated in the Startups Act) as well as the degree of innovation and scalability of the companies that want to be certified. This recognition allows companies to benefit from:

• Reduction of the corporate tax rate to 15%.
• Deferrals of tax debts.
• Exemption from making fractional corporate tax payments.
• Elimination of certain registration fees for the establishment of a new company.
• Exemption from the obligation to obtain the NIE in the case of non-resident foreign investors.
• Bonus, for three years, of Social Security contributions for self-employed entrepreneurs who are also employed.
• Extension of the amount of the exemption, up to 50,000 euros per year, in the case of delivery of stock options to employees.
• Increase in the deduction for investment in start-up companies, increasing the rate to 50% and the maximum base to 100,000 euros.
• Promotion in the creation and development of controlled test environments to validate the viability and impact of new models on regulated activities.
• Facilities for the provision of guarantees or on-account payments in the case of granting grants.

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Other Benefits of Being Certified as a Startup

In addition to the advantages of obtaining start-up certification, in terms of tax benefits, certified companies may benefit, indirectly, from aspects such as:

• Access to specific funding: Companies certified as start-ups may have easier access to specific funding programs designed to support innovation and technological development. This can include grants, low-interest loans, loan guarantees, and other types of funding. In addition, some investors may be especially interested in investing in companies certified as emerging companies, which can make it easier to obtain private funding.
• ‍Increased visibility and recognition in the market: Start-up certification can help increase a company's visibility and improve its reputation in the market. This certification can be an indicator of the company's ability to innovate and develop advanced technology, which can be attractive to customers, business partners, investors, and other market players. In addition, certification can help a company to differentiate itself from the competition and to position itself as a leader in its sector or field of activity.

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What requirements must companies that want to obtain the Startup Certificate meet?

Companies that want to become certified as a start-up must meet a number of requirements, including:

• Be a newly created company or that no more than five years have elapsed since its registration in the Commercial Register.
• Not having arisen from a merger, spin-off or transformation of companies.
• Do not distribute dividends.- Do not list on a regulated market.
• Have the headquarters or registered office in Spain.
• Have at least 60% of the workforce with an employment contract in Spain.
• Develop an innovative entrepreneurship project with a scalable business model.

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How long does it take to get certified?

Once the certification request has been completed, Enisa will notify its resolution within a period not exceeding 3 months. This deadline may be suspended if there is a need to require additional information and/or documentation.

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How and where is the procedure carried out?

The certification procedure begins with the electronic submission of the certification request by the company interested in the electronic registration enabled on the ENISA web portal. The different sections to be filled in are as follows:

1. registry

2. Applicant data: Including company data, company address, legal representative of the company, contact person, etc. It is in this section that you must include attached files such as the annual accounts for the last closed financial year, the company's deeds of incorporation, etc.

3. Group of companies: Including, organizational structure of the group of companies, degree of innovation of the group, degree of scalability of the group, etc., only in those cases in which the applicant company is part of a group of companies.

4. Business plan

5. Enisa loan: Enisa will consider as a factor of direct approval of the nature of the innovative venture the having signed one or more credit policies with the bank itself in the last three years; and the nature of a scalable venture, provided that any of them are in force and there are no consequences to it.

6. Degree of innovation: The criteria for evaluating the nature of an innovative enterprise contemplate the presence of innovation, either in the business model or in the product or service or in the differentiated processes of the business project, in the use of its own technology or in the use of patents and other industrial property rights. This section includes additional objective criteria that act as factors for direct approval of the nature of an innovative venture, including:

• To have received an award or recognition as an innovative company.
• To prove that you enjoy Social Security contribution bonuses for hiring Research Staff.
• That it has an Innovative SME Seal or the Young Innovative Company Certification.
• Etc.

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If none of them are available, the company can prove its degree of innovation through:

• Development or use of patents.
• Use of our own technology.
• Differentiation in company processes.
• Differentiation in the product or service.
• Differentiation in the business model

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7. Scalability Including the following criteria:

• Degree of market attractiveness: Enisa will assess demand growth, the sensitivity of demand to the business cycle, barriers to entry for new providers, the level of existing competition, together with indirect aspects that may help establish or infer the degree of attractiveness of the market.
• Life phase of the company: The position of the company in the market will be assessed, whether the products or services are in the market or not, since when they are marketed, the period they have been under development or how long they will take to reach the commercialization phase.
• Business model: Forecasts for each of the next four years must be included, including data for the last closed financial year, on: the company's activity, its history, the investment objective, the planned investments, and a financing scheme for the planned investments.
• Competence: Reference should be made to the advantages and disadvantages that competing companies represent with respect to the applicant company. Competing companies in their field or sector of activity and their differentiation from the applicant company will be evaluated.
• Management team: The experience, training and trajectory of the team that makes up the company will be valued. To do this, reference should be made to previous experience in the sector and to previous experience as managers in other companies or other sectors, whether related or not.
• Partners and shareholders: It refers to their experience as partners in other companies and their degree of success in them, their fundamental activities and the degree of involvement in companies that can be inferred as economic solvency.
• Providers: It refers to the importance/critical nature of the main companies or professionals that provide services to the company and their importance in the company's production process, as well as their differential elements and importance in it.
• Customers: It will be assessed whether or not the company has customers, their degree of concentration and their relevance in the company.

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Other frequently asked questions about Enisa's Emerging Company Certification

Can self-employed people be certified?

No, only companies incorporated as Capital Companies (SL, SA, SAL, SLL, etc.) and cooperatives that meet the requirements established by the Law can be certified.

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Can the same entrepreneur be a partner of several certified companies?

For the purposes of the new Startups Act, if you can be a member of one or more certified companies.

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How long does certification as an Emerging Company last?

The validity of the certification is conditioned on the occurrence of any of the following situations:

• Stop complying with any of the requirements set out in Article 3 and in particular, after five or seven years from the creation of the start-up company.
• The company is disbanded before that term.
• Be acquired by another company that does not have start-up status.
• The company's annual turnover exceeds ten million euros.
• Carry out an activity that causes significant damage to the environment in accordance with Regulation (EU) 2020/852 of the European Parliament and the Council of June 18, 2020 concerning the establishment of a framework to facilitate sustainable investments and amending Regulation (EU) 2019/2088.
• Partners who hold, directly or indirectly, a stake of at least 5% of the share capital or managers of the start-up company have been convicted by a final judgment for the types of crimes included in Article 3.3.

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We help you to obtain the Enisa Emerging Company Certificate

From Intelectium, we are experts in applying for and managing grants and certificates for innovative startups and SMEs. We help you assess your startup's eligibility for certification. Get in touch with us hither for expert advice.