Over-regulation hinders business growth.
We detail some of the regulatory barriers that can hinder business growth.
Entrepreneurs often have a vocation for growth. Unfortunately, sometimes, in addition to the difficulties of a competitive environment and/or economic crisis, if companies do not grow it is because there are regulations that remove incentives to do so .
Administrations cross-check data to impose fines and collect taxes, but not to make life easier for citizens and businesses.
Some regulations may be useful for businesses or their employees, but they should be reviewed. From time to time it would be necessary to examine what regulations can be eliminated or reduced to facilitate business growth .
According to the European Commission's report , Spain country report 2018 , there are more than 100 regulations linked to business size that discourage growth. They are tax, labour, accounting, financial, insurance and competition regulations, not counting sectoral rules or other limitations.
1. Regulatory barriers in union matters
As a company grows, so do the obligations of companies regarding employee representation. The right of employees to participate in the company is articulated through employee representatives and company committees, without prejudice to other forms of participation.
Staff representatives : these are the representatives of workers in companies or work centres with fewer than 50 and more than 10 workers. There may also be a staff night clubs and bars email list representative in companies or centres with between six and ten workers, if they so decide by majority vote. Staff representatives may be:
A delegate for companies with up to 30 employees.
Three, for companies with 31 to 49 employees.
Company committees : are the representative and collegiate body of all the workers of the company or workplace for the defence of their interests, established in each workplace with a census of 50 or more workers. The number of members of the company committee depends on the number of workers:
Five for companies with 50 to 100 employees.
Nine for those with 101 to 250 workers.
Thirteen, for those with 251 to 500 workers.
Seventeen, for those with 501 to 750 workers.
Twenty-one, for those with 751 to 1,000 workers.
From 1,000 onwards, two for every thousand or fraction thereof with a maximum of seventy-five.
2. Tax regulations
The larger a company is, the greater its tax obligations are.
According to the provisions relating to Value Added Tax (VAT), entities that in the previous calendar year have exceeded a volume of operations of 6,010,121.04 euros will become Large Companies , as provided for in article 121 of Law 37/1992, of December 28, on Value Added Tax.
