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Wednesday, 02 December 2015 13:40

Do you really protects the new housing law entrepreneur?

The new Law on Support for Entrepreneurship and Internationalization recently approved devotes an entire chapter, the Second, Entrepreneur Limited Liability to protect the residence thereof any debts that may be incurred in the exercise of their business.

Now, what are the requirements under the Act itself:

  • The value of housing should not exceed 300,000 euros, valued according to the criteria required for settlement of the Transfer Tax and Stamp Duty. This figure would be multiplied by 1.5 in the municipalities of over 1,000,000 inhabitants. 
  • In addition, it is required to be residence of the Entrepreneur.
  • The entrepreneur must register in the corresponding home Mercantile Registry property, own or common good, which claims that no business is bound by debts, and its publication in the Bulletin of the Commercial Registry. (Borme).
  • Registration will also be necessary in the Land Registry where the property is registered.
  • The entrepreneur who contract debts through fraud or gross negligence, accredited by final judgment, or guilty contest, may not benefit from this legislation.
  • The entrepreneur must state in all documentation, stating the registry information, the status of Limited Liability Entrepreneur, or by adding your name and tax identification information, the acronym ERL.
  • This protection does not work with debts incurred prior to inmatriculación in the commercial register as Individual Entrepreneur Limited Liability, or if the debts have not been contracted by the company. Nor is it considered such protection in the case of debt with the IRS or Social Security.
  • The Entrepreneur shall audit the annual accounts and deposit them in the Commercial Register.
  • Analysis of all the requirements we believe that the law is totally theoretical with a real application that we doubt become popular because, in practice, the legal figure of the Limited Company Unipersonal protects the administrator, not only in your residence, but all its assets.

David Figueras Batet
Partner director SFlawyers S.L.