THE INNOVATIVE START UP COMPANY: A NEW CONCEPT FOR ITALY, AN ESTABLISHED REALITY FOR SPAIN

With the aim of create new employment and attracting talent and capital from abroad, the new Law n. 221/2012 (December 17th) establishes a new kind of corporation in Italy: the innovative Start Up, “Start up Innovative”: a non-listed company, with development and commercialization of innovative services and high technologic value products as its exclusive - or predominant - business purpose.

The head office shall be in Italy and its shares controlled by individuals for at least 51%.

The main incentives for those who chose this kind of company are a) employees may be hired by temporary working contracts and paid -in part- with stock options; b) tax advantages and free registration in the special section of the companies register; c) no bankruptcy or other insolvency procedures can be activated for the first four years of its activity.

Similar incentives and advantages are already known in other European regulations, particularly in Spain, the New limited Liability Company, “Sociedad limitada Nueva Empresa” (introduced by Law 7/2003) has been created to render faster and simple the incorporation of new companies. Not limited only to high technology business, this new Spanish company may be set up in a very short time, with lower share capital respect a standard limited liability company and simple governing body. Moreover, it is possible to be granted with some tax incentives during the start-up period.