What are the tax incentives for innovative startups?

What are the tax incentives for innovative startups?

If you intend to establish or transform your company into an innovative startup, you need to be aware of the advantages that this operation can bring.

In fact, there are several advantages both from the bureaucratic and tax benefit point of view for registration in the Register of Companies.

First of all, how does one become an Innovative Startup?

In order to have the status of an innovative startup and receive tax incentives, it is necessary to have specific characteristics:

– Only corporations (S.P.A, S.a.p.a, S.R.L or S.R.L.S.) can have the status of innovative startup;

– To be based in Italy or in one of the EU member states;

– Not having distributed profits or not having distributed profits in the following 4 years;

– Not having an annual production value of more than 5 million euros, from the second year;

– Not to have been set up by extraordinary financial operations such as M&A, mergers or demergers;

– To have as its corporate purpose the development of products/services with high technological value.

What are the advantages during the incorporation phase?

The incorporation of an innovative startup guarantees the exemption from the payment of stamp duty and secretarial fees for registration in the Register of Companies: it is about 220 euros per year. Obviously, the exemption is linked to the maintenance of the legal requirements for obtaining the status of innovative startup and in any case has a duration no longer than 5 years.

What are the tax incentives for innovative startups after incorporation?

Once you have obtained the status of innovative startup, your company can have access to a series of tax incentives including:

– Hiring incentives: innovative startups benefit from the possibility of renewing fixed-term contracts for an additional 12 months, beyond the typical 36;

– Incentives to obtain funds through crowdfunding by facilitating access to capital through the public offering of company shares;

– Possibility of access to the Smart&Start call for proposals: the funding call that supports the birth and growth of innovative startups throughout the country. Zero-interest financing on up to 90% of projects for amounts ranging from 100 thousand to 1.5 million euros;

– Tax benefits for those who invest in innovative startups: individuals who invest or have invested in innovative startups are granted a deduction for IRPEF purposes;

– Possibility of exemptions from the prohibition to carry out transactions on one’s own shareholdings provided that the transaction serves to provide financial instruments to employees, collaborators, etc. (work for equity and stock options);

– Possibility of using institutions allowed only in SpAs also for innovative startups set up as SRLs: for example, the creation of categories of quotas even without voting rights or with voting rights not proportional to the shareholding, or the issue of participatory financial instruments;

– Possibility of accessing the Guarantee Fund that facilitates access to credit thanks to the guarantee on bank loans.

There are many advantages linked to the status of innovative startup. If you have the right characteristics, you can transform your company into an innovative startup even after you have already established your corporation.

If you need clarification or would like to receive more information do not hesitate to contact us!

The BizPlace Team

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