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Enterprise creation network in Spain (CIRCE)

Anonymous (not verified)
Published on: 14/02/2006 Last update: 15/02/2006 Document Archived
Until fairly recently, the process of creating a small enterprise in Spain was a slow process with a lot of red tape and excessive paperwork. The New Enterprise CIRCE project is an initiative which aims to respond to the measures that the European Union has recommended in order to alleviate the currently existing problems concerning the creation of companies, aimed at reducing and simplifying the administrative burdens borne by the companies: coordination between public services, the creation of a single point of contact to create enterprises, the gestation of environments which facilitate the creation and development of innovative companies and the production of a single form for the same purpose, among others. For this reason, it is based on an new form of company, the New Enterprise Limited Company (SLNE), whose characteristics make it very similar to the already existing Limited Company (SL), although with some advantages over this. The regulations that govern the SLNE offer the possibility of performing the proceedings to incorporate and set the SLNE in motion electronically, thus avoiding the entrepreneur having to make trips whilst making substantial savings in time and costs. The SNLE electronic processing system gives speed and convenience to the entrepreneur in the awkward process of creating small enterprises, in which in many cases the possible entrepreneurs give up due lack of information and excess paperwork. To do this, the employer should contact the Advice and Processing Initiation Centre (PAIT) where he/she will be advised on all things related to defining his/her business Project and this would enable him/her to start processing its incorporation and start-up online. New Enterprise CIRCE is one of the most advanced Electronic Government processes in Spain. It is a pioneering project that has meant an important step forwards in the process of breaking down barriers to achieve other inter-administrative service initiatives. It also contributes to the development of the information society, putting different participants in contact with the new technologies and forcing the development of Electronic Government in the Public Administrations as a whole.

Main results, benefits and impacts

The following can be distinguished from among the most important advantages: - Reduction of trips that have to be made by the entrepreneur. The incorporation of a company in person involves the entrepreneur having to travel to each of the eight bodies involved, where he/she fills in different types of applications. By electronically processing a New Enterprise Limited Company (SLNE), the entrepreneur only has to make two trips: 1. To the Advice and Processing Initiation Centre (PAIT), where he/she will be advised on everything related to the creation of his/her company and fills in the Single Electronic Document, which includes all the data required by the governments, and which will then be sent to each one of them to perform the incorporation procedures. 2. To the Notary's office, where the entrepreneur will sign the articles of association. Once these two steps have been taken, the entrepreneur will only have to wait to receive all the documentation through the means of notification chosen. - Reduction in the number of forms to be filled in by the entrepreneur. He/she just has to fill in a single form which includes the information required by all those bodies: details of the owner of the company name, details of partners and employees, company details, payment of taxes, making an appointment with the notary, application of registrations with social security, etc. Furthermore, said document (DUE) is filled in by a professional at the PAIT, who will guide and advise them so that the data entered is correct and favour the interests of the entrepreneur. - Reduction in the entrepreneur's waiting time. Until now the average waiting time to incorporate a company in Spain by in person was sixty days. This means the entrepreneur wastes a lot of time. Using the electronic processing system, this waiting time is reduced to a maximum of 48 hours, meaning it is one of the fastest enterprise creation processes. - Reduction in the time used by the governments. The standardization of the articles of association imply that the governments involved in the process radically reduce the time necessary for the processing. In this way, the Registrar is obliged to perform the registration in the 24 hours after it is received. For his/her part, the Notary is obliged to send the first copy of the articles of association in a period of less than 24 hours. All these benefits involve a reduction in costs for all the participants in the process, although these costs are not always quantifiable: - Reduction in costs in the governments. Simplifying the proceedings means the employees and time devoted to the procedures are reduced. - Reduction in costs for the entrepreneur. One of the most important functions of the PAIT is to offer the entrepreneur full, free advice on all things related to the creation of his/her company.

Return on investment

Return on investment: Not applicable / Not available

Lessons learnt

The experiences acquired and the knowledge generated by the New Enterprise - CIRCE project may be extremely useful to the Administrations as a whole because of two basic matters. The first is that work has been done to achieve a target that is common for any developed society such as the dynamization of the business fabric. The second is that it is dynamized by promoting the intensive use of information technologies. From the lessons learned, we can highlight a group of them that is especially relevant due to their political and economic implications. They can be grouped in five categories, which are described below. Management The most outstanding aspect that has made this project possible has been the leadership shown by the Ministry of Economy. Without the strong political boost given by the SME Policy Office, dependent on said Ministry, it would have not been possible to involve all the participants that today form part of CIRCE in such an ambitious project. Another point to bear in mind is the creation of a multidisciplinary team in which technicians, legal experts, lawyers expert in Commercial Law, Tax Law, Fiscal Law, etc have participated. This type of team gives a comprehensive view of their aims to the project and the possible solutions, impossible to obtain in any another way. Legal Aspects The project has not been limited to tackling the merely technical or economic aspects thereof, but tailor-made legal coverage has also been incorporated through Laws, Decrees, Ministerial Orders, etc. Operations The most important lesson obtained in this field is the concept of Single Electronic Document. The applications of an electronic document are practically unlimited, they can be used by any Public Administration and, due to their reliability and speed, generate high added value for the company as a whole. The standard interconnection frameworks permit different administrations to become incorporated in the project at little cost. Finally, it uses a digital signature and secure connection procedures, which will undoubtedly be the way in which the citizen communicates with the Public Administrations in a not too distant future. Personalized work with the participants The experience acquired in New Enterprise - CIRCE demonstrates that success would not be possible without working individually with each of the organizations to be integrated in the project. Any Administration that tackles a project of this complexity should adapt the framework of interoperability to the requirements and specifications of each participant. This adaptation should also be performed so that it can fit into the previously defined standards, for which reason one of the technical characteristics mentioned below is vital: flexibility.
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