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Practical Manual of Companies 2021.

Scope

Regulation: Articles 30, 31 and 41 Law 19/1994

  1. The geographical scope of the ZEC will extend to the entire territory of the Canary Islands.

  2. Regarding subjective scope of application , newly created legal entities and branches that are registered in the Official Registry of Entities of the Canary Islands Special Zone may benefit from the ZEC regime, and meet the requirements listed in article 31.2 of Law 19/1994:

    1. That they have their registered office and their effective management headquarters within the geographic scope of the ZEC.

    2. That at least one administrator or, in the case of branches, a legal representative resides in the Canary Islands.

    3. Constitute its corporate purpose the implementation in the geographic scope of the ZEC of economic activities included in the annex to Law 19/1994. Likewise, through a separate branch, they may carry out other activities to which the benefits of the ZEC will not apply, in which case they must maintain separate accounting.

    4. Make investments in the first two years from its registration, that materialize in the acquisition of assets of tangible or intangible assets, located or received in the geographical scope of the ZEC, used in the same, affected and necessary for the development of the economic activities carried out by the taxpayer in said geographical area, complying with the conditions and for the minimum amount indicated in article 31 of Law 19/1994.

    5. The creation of jobs in the geographic scope of the ZEC within six months following its registration and the maintenance of at least that number of the average annual workforce during the period of enjoyment of this regime, with a legally established minimum.

    6. Present a descriptive report of the main economic activities to be developed, that endorses their solvency, viability, international competitiveness and their contribution to the economic and social development of the Canary Islands, whose content will be binding for the entity, except for changes in these activities with prior express authorization from the Governing Council.

  3. Regarding the registration procedure of an entity in the Official Registry of Entities of the ZEC, article 41 of Law 19/1994 establishes that said registration is conditional on prior authorization from the ZEC Consortium.

    For these purposes, a application must be submitted which will be accompanied by the descriptive report of the main economic activities referred to in letter f) of the article 31.2 of Law 19/1994. Along with this application, a deposit or guarantee will be provided in the amount of the registration fee regulated in article 50.

    In view of the documentation provided, the Governing Council will proceed with the authorization, following a favorable report from the Technical Commission .

    The authorization by the Governing Council must be granted, expressly, within a period of 2 months, counting from the date of receipt of the application in the ZEC Consortium. If this period has elapsed without an express resolution, the request for authorization will be deemed to have been rejected.

    Once the authorization is obtained, the applicant must provide the Official Registry of Entities of the ZEC with the documents proving the constitution of the entity in accordance with the Law.

    Registration must be carried out within a period of 10 days, counting from the day on which the documents referred to in the previous paragraph are presented.