On December 23, 2022, the Law 42/2022 came into effect, dated December 1, introducing three regulations regarding the digital economy, entrepreneurship, and innovation. This legislation establishes various measures and regulations in the field of digital economy, with the goal of making Andorra a competitive country for attracting businesses and professionals interested in developing activities in this new economic domain
The Amendment Regulation of the Law on Anonymous and Limited Liability Companies has introduced a new legal framework aimed at adapting to the changing business environment and promoting the development of start-ups. The previous legislation did not specifically anticipate the concept of start-ups, which are characterized as emerging companies with high growth and innovation potential.
To support this type of companies and provide them with an appropriate legal framework, Article 66 of the Regulation establishes the effects of declaring a start-up commercial entity. This declaration allows companies to adopt the form of a start-up limited liability company (SLS) or a start-up anonymous society (SAS), and it requires the inclusion of the acronyms SLS or SAS in their name.
The inclusion of these specific acronyms in the names of start-up companies aims to clearly identify them as companies with special characteristics and advantages. This regulatory modification aims to raise visibility for this type of company and facilitate their identification in the market.
In addition to the inclusion of the SLS or SAS acronyms, the regulation provides benefits and incentives for start-up commercial entities. These benefits may include tax incentives, facilitation of access to financing, more flexible mechanisms for organizing and governing the company, as well as other specific measures aimed at fostering their growth and success.
Through this legislative amendment, an attempt is made to establish a regulatory framework that recognizes and supports the particularities and needs of start-ups. It is understood that these companies play a key role in innovation, job creation, and economic development. Therefore, it is important to have legislation that specifically considers them and offers a favorable environment developing their potential.
In summary, the Amendment Regulation of the Law on Anonymous and Limited Liability Companies has introduced the concept of a start-up commercial entity, which was not previously provided for in the existing legislation. This legal framework allows emerging companies to take the form of a start-up limited liability company (SLS) or a start-up anonymous society (SAS) and include the corresponding acronyms in their name. In addition to the name, benefits and incentives are established for this type of company with the aim of fostering their growth and success. The purpose of this regulatory modification is to support and promote the development of start-ups, recognizing their importance in the economy.
For more information, please feel free to contact the professional experts at addwill in Andorra via phone at +376 833 333 or email at andorra@addwill.eu, or by clicking here.