Sat, 20 Aug 2022

What is it like to create a startup?

28 Jun 2022, 01:24 GMT+10

In the past, it could be defined as a startup company operating in an innovative sector focused on research and development of new business, as it operated in the IT and networking sector. Still, today startup means much more and extends to other areas.

What differentiates a startup from a normal company?

The term startup was applied to those companies that met certain characteristics as of 2012, the year in which Law 221/2012 was enacted, better known as the "Growth 2.0 Decree", which specifically defined the so-called innovative startups, characterized by a fundamental element: scalability.

What does "scalable startup" mean?

It is a company whose activity is easily replicable, or other companies can use the discovery of a startup. In this way, it is possible to increase the size and volume of business exponentially.

Growth 2.0 Decree: what does it bring to startups?

A startup is, above all, an opportunity to facilitate entrepreneurship and research, foster youth employment, and attract capital to each country. The government has guaranteed a whole series of advantages to achieving all this. Still, according to the law, companies cannot be listed on the stock exchange until they meet the definition of a startup.

The benefits

Innovative startups are small companies with high technological content that are especially dedicated to research, like in essay niche. The decree creates a list of certified incubators, i.e., recognized by the State to unlock the economic situation of those with the right ideas for a startup and contribute from a management point of view. Certified business incubators are "companies that offer, even non-exclusively, support services for the birth or development of new innovative companies." They support and accompany the development of startups from the conception of the business idea. There are also other important aids:

  • The new modality of digital and free incorporation, saving the costs of the public act;
  • Exemption from chamber fees and registration fees;
  • Extension of the deadline to cover losses;
  • Tax incentives for those who invest in the venture capital of the company;
  • Possibility to raise funds through crowdfunding, only on authorized portals;
  • Simplified access to the services of the Guarantee Fund for Small and Medium Enterprises;
  • Internalization services to guarantee regulatory, corporate, and tax assistance through the ICE agency in charge of this type of ICE agency in charge of this type of service;
  • Possibility of extending fixed-term contracts for workers: fixed-term contracts may have a maximum duration of 36 months, three times the 12 months provided by the current law.
  • 12 months provided for by the current law;
  • Possibility to remunerate staff in a flexible manner and through equity instruments.

Requirements for the creation of a startup

The company must be created from scratch or must not be more than five years old.

The exclusive or main corporate purpose is developing, producing, and marketing innovative products or services of high technological value.

The startup must not derive from a merger, a spin-off of the company, or the sale of a business. The maximum annual value is set at 5 million euros. The company must not distribute or have distributed profits in the past.

The presence of strong innovative content is determined by the fact that 15% of the value obtained from the ratio between turnover and annual costs will be attributable to research and development activities; the total workforce must consist of at least 1/3 of doctoral students, PhDs or researchers, or at least 2/3 of partners or collaborators of any category with a master's degree; the company must be the owner, depositary or licensee of a registered patent.

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