Enterprises are a source of wealth and jobs. We all aim for them to continue their existence, growth and success.
The market is a highly competitive and changeable place. An enterprise may experience temporary financial difficulties at any given time, for external or internal reasons. To help these enterprises overcome such situations, measures are put in place by the public authorities.
Enterprises can claim for collection of their credits more easily
Enterprises request payment of their credits from their debtors on a voluntary basis. If they cannot collect the credits voluntarily. They can claim for payment before the courts. These cases are now subject to a simpler, fast-track process.
Funding assistance for enterprises
Economic grants are available to enterprises for various purposes. These include measures to help enterprises find funding. There is also a public authority supplier payment plan; for further information consult the following links.
Sums owed to the tax authorities can be deferred or paid in instalments.
1.1 With regard to the payment of taxes and other taxation obligations: Corporation Tax, Personal Income Tax, Value Added Tax, special taxes and others. Enterprises file tax returns or self-assessed settlements for each tax or taxation obligation. These tax return forms allow taxpayers to apply for a temporary deferral of payments or to pay by instalments.
1.2 Enterprises withhold a part of their employees' salaries and deposit this with the tax authority as an advance payment of their employees' Personal Income Tax. In the case of withholdings and advance payments of their employees' Income Tax return, business owners can apply for deferral or payment by instalments.
1.3 The second option is to apply for deferral or instalment payment of tax debts using the forms specifically established for this purpose. In the case of debts of up to 18,000 euros, there are no additional requirements. In cases of debts in excess of this sum, a bond or surety must be presented.
Enterprises with the legal status of companies are obliged to file these tax returns online using an electronic signature or other valid certificate. Electronic signatures can be obtained in person at the State tax agency offices. In the case of sole traders, in some cases tax returns may be filed at an office in person.
You can find out about similar possibilities regarding the taxation agencies of the Autonomous Communities and local authorities.
Your enterprise's debts with the Social Security. You can apply for deferral of payment. Further information and forms are available online. The forms are TC 1710 1711. They can be filed at the closest Social Security Treasury Office in person. On the Social Security website, the electronic office, using the NOTE program with an electronic certificate, you can track the procedure.
Within the sphere of employment law, following the 2012 reform enterprises enjoy greater flexibility in adapting to change and difficult periods, for example by reducing their employees' working hours. These possibilities serve to avoid redundancies. In extreme cases employment contracts can be suspended or terminated. General information about labour relations is available via the following links:
Initiatives to advise and assist business owners through further information
Access to different sources of finance can help overcome financial difficulties.
When filing for bankruptcy is the only option left for a business owner, it pays to cut your losses, initiate proceedings sooner rather than later, and move on to a new project.