Opening an innovative startup: pros and cons
Opening an innovative startup has numerous advantages, especially from a fiscal, economic, and legal point of view.
In fact, according to the legislation in force, innovative startups enjoy multiple facilities for a duration of five years from their establishment. After this period, they can become innovative SMEs, without losing the benefits available.
However, despite the benefits, opening an innovative startup also has disadvantages related to workload, schedules, responsibilities and entry into the complicated and chaotic world of the market that it will face once the start-up phase is over.
Innovative startup: what is it all about?
To encourage the birth and development of this type of company, the Italian legal system has introduced a series of rules. In fact, in 2012, Legislative Data No 179/2012 introduced some specific measures that aim to develop a dynamic and competitive innovation ecosystem, to create new employment opportunities and to promote sustainable growth.
Pursuant to Legislative Decree 179/2012, art. 25, paragraph 2, an innovative startup is a capital company, also established in a cooperative form, which complies with the following objective requirements:
- is a new undertaking or one which has not more than 5 years been set up
- has residence in Italy, or in another country of the European Economic Area but with production or branch office in Italy
- has an annual turnover of less than 5 million euros
- is not listed on a regulated market or AN MTF
- does not distribute and has not distributed profits
- has as its exclusive or prevailing corporate object the development, production and marketing of a product or service with high technological value
- was not the result of a merger, division, or transfer of a business unit
The innovative content of the enterprise is identified with the possession of at least one of the following requirements:
- supports expenses in R&D and innovation equal to at least 15% of the greater value between turnover and cost of production.
- it employs highly qualified personnel (at least 1/3 PhDs, PhD students or researchers, or at least 2/3 with a master’s degree), is the holder, custodian, or licensee of at least one patentor holder of a registered software.
You can obtain the status of innovative startup – and thus take advantage of the related facilities – by presenting theself-certification signed by the legal representative and requesting that the company be registered in the special dedicated section of the Register of Companies at the Chamber of Commerce of your province.Opening an innovative startup: advantages and benefits
Opening an innovative startup has numerous advantages, as already mentioned at the beginning.
An important advantage, compared to other companies, concerns the establishment of the start-up through the digital procedure, simplified and free (optional and valid only for S.r.l.),which provides for the compilation online, on the https://startup.registroimprese.it/isin/homeportal, of a typed and customizable standard model of the deed of incorporation and the statutes, without the intervention of the notary.
We talked about it in depth in the previous article “The requirements to start (or become) an innovative start-up”.
Staffrecruitment can also be carried out in a more facilitated way, with time contracts renewable several times, just as it is more advantageous to remunerate employees through equity incentive plans.
Innovative startups also can raise capital through crowdfunding campaigns and to access a guarantee fund made available by the government to facilitate access to credit through the granting of guarantees on bank loans, with coverage of up to 80% of the credit disbursed, granted on the basis of simplified criteria.
There is also support in the internationalization process, made available to the ICE Agency and, unlike classic companies, innovative startups are exempt from paying stamp duty and secretarial fees and from paying the annual fee due to the Chamber of Commerce.
Finally, with the DL34/2020 (cd. “Relaunch” Decree) measures have been introduced to strengthen and support the ecosystem of innovative startups.
We have deepened in detail all the legal, economic and tax benefits in the previous article “Legalbenefits for innovative start-ups”.
Opening an innovative startup: what disadvantages?
Despite the benefits, opening an innovative startup also has disadvantages related to workload, schedules, and responsibilities.
An innovative startup is often characterized by flexible working hours, sometimes even in smart working; however, especially in the initial phase, work rhythms can be tiring and involve a high load of work stress. It is essential, therefore, to be able to correctly manage stress and possess excellent problem-solving skills.
Other aspects to consider include accountability, risk exposure and the ability to coordinate and maintain a close-knit working group.
Some startups, in fact, are founded by a small group of entrepreneurs, who gradually “recruit” other members with different skills and abilities.
To function properly, a successful startup needs elements that are not only valid at a professional level, but also able to work together, with a clear organization and through a periodic comparison between the different teams.
Finally, once the start-up phase is over and they have taken advantage of the facilities provided, innovative startups must face a complex economic system. Usually, an innovative startup enters the market with a small budget; it becomes essential, therefore, to have adequate resources and skills to face competitors.
How to open an innovative startup
To open an innovative startup, it is first necessary to verify that you meet all the required requirements.
At this stage it is very important to evaluate and choose the correct legal form because you must adapt fully to your needs.
Finally, you will have to declare the start of activity and request registration to the special section of innovative startups.
These three steps can be done in two different ways:
- independently: less expensive method, but also slower and with uncertain results, through the website of the chamber of commerce;
- relying on a professional: more expensive method, but also faster and safer, within a few days the expert starts the innovative startup smoothly.
The importance of legal and fiscal support
The Coscia Law Firm, thanks to the team of specialized professionals coordinated by the Lawyer Marco Coscia, registered in the special list prepared by the CNF:
- provides all the information on the requirements necessary for the establishment of innovative startups and a prior assessment of the existence of the same;
- provides in favor of the innovative company all the consulting services indicated in the “Growth Decree”, also assisting it in the preparation of the necessary documentation and in the forwarding of the same;
- manages the practice until the successful conclusion of the same;
Contact us immediately at +39 3711453121o by e-mail at email@example.com