The Council of Ministers has approved a royal decree designed to change the administrative culture, liberalise trade, eliminate bureaucracy, streamline and simplify procedures and support entrepreneurs, the measure including the so-called ‘autolicencia exprés’ – automatic licence.
Until now, obtaining a licence, opening and activity, has been dependent upon the speed of the local administration with some businesses having to wait 18 months for the necessary paperwork. In the meantime, rents and other costs have had to be paid.
The new measure will allow businesses to open the day after presenting a statement declaring compliance with all regulations and payment of the fee. All the controls previously deemed necessary to be carried out before a business can open will now be done after the event.
The new measure initially covers businesses occupying a space of 300 square metres or less and dedicated to certain products and services, such as butchers, bakeries, clothing stores and hairdressers. It could, however, be extended in the future to cover larger enterprises.
Small businesses employ 1.8 million people and account for 5% of GDP, but setting up a business has always been costly and hampered by interminable red tape. The Government now seems to realise that the small business should be treated with more respect rather than being constantly made to jump through hoops to get started.