The Government submits to public consultation the future ‘Startups Law’

The Government initiates the legislative procedure of the Startup Ecosystem Promotion Act (or ‘Startup Act’) with the opening of the public consultation process.

The public consultation seeks that the text of the preliminary draft of the ‘Startup Law’ includes and responds to the different needs and sensitivities of the ecosystem, and requests the opinion of citizens and entities with regard to issues such as the conceptual delimitation of a startup, the requirements that must be met by private investment agents or “business angels”, and the necessary measures to support and encourage the creation and activity of startups.

The ‘Startup Act’ will recognise a specific legal nature for these companies, which present a number of peculiarities. In particular, the global potential of their business models, their strong innovative vocation and the specificities of their financing needs during the early stages of the life of the projects.

The objective of this regulation is to create a legal framework suitable to technology-based entrepreneurship, allowing the flexibility required by the dynamism of the innovative ecosystem and trying to provide Spain with legislation adapted to the reality of these companies.

The normative process has been launched by the Ministry of Economy and Enterprise through the Secretary of State for Digital Advancement, and is an essential part of the Spain Entrepreneurial Nation strategy to reconvert the productive model of the country through the promotion of entrepreneurship. The opening of the public consultation marks the beginning of the commitments to support the entrepreneurial ecosystem announced by the President of the Government, Pedro Sánchez, last October.

The public consultation will remain open until January 25, 2019 through the following link: www.mineco.gob.es/leystartups