Simplifying the bureaucracy that entails wanting to formalize a venture and greater access to financing tools are some of the points raised by the bill promoted since 2016 by ASEA. We have plenty Act Entrepreneurs seeks to simplify the steps in the formalization of enterprises talent that wants to develop. However, many times we do not have the tools so that this talent can generate the jobs that are needed. We find it difficult to undertake the bureaucracy teamwork and believe in ourselves, we can do it. Lack of funding is another major barrier.
Since ASEA and with countless institutions that are part of the entrepreneurial ecosystem we promoted, in 2016, the Law on Entrepreneurs and Venture Capital. A tool allows you to lower the barriers so that any entrepreneur can start up his business in 24 hours and seek financing for his project. It facilitates the creation of companies through a new type of company called Simplified Company (SAS), with the following characteristics:
Currently, this process in Argentina averages 60 days in the Federal Capital and almost a year in the interior of the country. These improvements to the system are already implemented in the United States, Chile, Colombia and Mexico working perfectly. In fact, more than 70% of new companies created in Chile and Colombia in the last year are created under this new agile and simple format.
With regard to funding the bill proposes three main tools:
The first is the creation of National Development Fund for Venture Capital that focuses on the various early stages of a project seed Fund acceleration and Scalability (Fund of Funds). The State does not invest the state accompanies them to be able to foment the industry that today is completely.
The second is the creation of the National Register of Institutions Venture Capital, giving investors a profit tax up to 10% of its annual profits by 75% of the money invested in registered entities and 85% for that the money invested be in projects located in regional or less developed economies. The third tool is the legalization of crow funding of shares collective financing of actions.
So far, what we know is the collective financing of projects, but these projects cannot publicly offer their actions. The law incorporates the JOBS ACT of EE. UU Jumpstart Our Business Startups Act, which can be translated as let us start our startups so that any entrepreneur anywhere in the country can offer a percentage of their project to the international investment community. This is through online platforms regulated by the National Securities Commission.
The appeal of this new tool is that it encourages the launching of new projects and their validation and that it can generate a new investment culture. The investors so far not found the opportunity to invest in new projects could do online and with a simple procedure. Another important point is that you can create a secondary market for projects that belong to the platform. In general, the risk investor who invested in these projects had to wait a long time to recover the money. Here you can put the shares you bought on the same platform available to the rest of the community so that another person can buy you tenure to it and not wait for the entrepreneur to sell your company.
Facilitating the procedures for the creation of companies and the possibility of access to financing are ways of encouraging work and development opportunities.