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Procedure to become an enterprising municipality

Procedure to become an enterprising municipality

Here city councils can find all the steps to follow to be part of the Enterprising Municipalities initiative.

REGULATORY REFERENCES
General action protocol signed between the Galician Regional Government and the Fegamp

Protocol signed on 10 October 2017 to encourage the implementation and establishment of companies in Galicia through the creation of the "City Councils Doing Business Galicia" initiative.

Law 9/2021 of 25 February on administrative simplification and support for the economic reactivation of Galicia

Title VI of the regulation regulates the Galician initiative for Enterprising Municipalities.

Procedure to become
an enterprising municipality

1. FORMALITIES FOR COMPLIANCE WITH THE REQUIREMENTS FOR LOCAL COUNCILS BY LAW 9/2021 OF 25 FEBRUARY ON ADMINISTRATIVE SIMPLIFICATION AND SUPPORT FOR THE ECONOMIC REACTIVATION OF GALICIA

The municipality wishing to acquire the status of entrepreneurial city council must take the following actions in advance:

1.1.- Express their interest in joining the initiative through the adoption, by the competent body, of an agreement or resolution in which they commit to the establishment of the measures aimed at promoting the introduction of maintenance of companies specified in Article 80 of the aforementioned regulation.

The commitments made by the city council include the adoption of the following measures:

  • To resolve applications for building permits in which the applicant is a company or a self-employed person and whose purpose is the construction of a building intended for the first implementation of an activity or the expansion of existing facilities within a maximum period of 30 calendar days from the time the city council has the complete documentation and all the mandatory sectoral reports.
  • Establish price subsidies for municipally-owned business land plots in order to ensure that they are competitive.
  • Incorporate and offer companies the possibility of using the legal figure of surface rights.
  • To recognise the priority of the procedures and adoption of the urgent processing agreement regarding municipal procedures related to priority business initiatives.
  • Incorporate the municipality into the Investment Assistance System.
  • Carry out actions to review its regulatory framework aimed at good regulation.

1.2.- To approve by means of a plenary agreement, in accordance with the procedure regulated by Royal Legislative Decree 2/2004 of 5 March, or the regulation that replaces it, a modification of the tax ordinances regulating the real estate tax, the tax on economic activities and, if applicable, the tax on constructions, installations and works.

The purpose of this amendment is to establish the optional bonuses provided for in the state regulations governing local treasuries (Articles 74.2.quater, 88.2.e) and 103.2.a) of Royal Legislative Decree 2/2004 of 5 March, which approves the consolidated text of the Law Regulating Local Treasuries) due to circumstances of special interest or municipal utility linked to the creation of employment.

These bonuses will be established according to the parameters of the creation of new jobs and each city council will carry out the aspects it deems necessary based on its regulatory powers (type of contracts, documentation to be submitted by applicants, form of justification of the maintenance of the requirements, etc.).

However, in order to ensure uniformity in the application of these discounts, in order to be part of the initiative, the tax ordinances must contemplate the following points:

  • The percentage of the quota to be subsidised must be determined according to the new jobs created, respecting the following brackets:
    • At least 80 % for the creation of more than 20 jobs.
    • At least 75 % for the creation of between 11 and 20 jobs.
    • At least 50 % for the creation of up to 10 jobs.
  • The measures relating to periodical taxes must be maintained, for each taxpayer, for at least the three complete financial years following the financial year in which the taxable event occurs.

 Interested municipalities can obtain more information on these procedures via the Doing Business Galicia Office (vicesecretaria.cei@xunta.gal) or by contacting the Fegamp.

Once the previous procedures have been completed, the city council must send its application for membership to the General Technical Secretariat of the Regional Ministry of Economy, Industry and Innovation. 

The application must be accompanied by documentation proving compliance with the requirements. 

  • Certificate accrediting the adoption of the agreement or resolution by which the city council commits itself to the establishment of measures aimed at promoting the introduction and maintenance of companies.
  • Copy of the notices of final approval of the modified tax ordinances, published in the corresponding Official Gazette of the Province.

When the above steps are completed, the Technical Monitoring Committee of the Initiative (formed by representatives of the Galician Federation of Municipalities and Provinces and the Galician Regional Government), whose task is to carry out a prior analysis of compliance with the requirements of Law 9/2021 of 25 February on administrative simplification and support for the economic revitalisation of Galicia, may meet.

Subsequently, from the Department of Economy, Industry and Innovation, the evaluation of the fulfilment of the requirements for achieving the condition of Enterprising Municipality will be carried out, and if favourable, the declaration as Enterprising Municipality will be formalised by means of a resolution by the Regional Minister.