Regulation:Articles 30, 31 and 41 Law 19/1994
The geographical scope of the ZEC will extend to the whole of the Canary Islands.
With regard to the subjective scope of application , newly created legal entities and branches which are registered in the Official Register of Canary Islands Special Zone Entities, and which meet the requirements listed in Article 31.2 of Law 19/1994, may benefit from the ZEC regime:
They must have their registered office and their effective place of management in the geographical area of the ZEC.
That at least one administrator or, in the case of branches, one legal representative resides in the Canary Islands.
Its corporate purpose is to carry out, within the geographical area of the ZEC, the economic activities included in the Annex to Law 19/1994.They may also, through a separate branch, carry out other activities to which the benefits of the ZEC do not apply, in which case they must keep separate accounts.
To make investments within the first two years of registration, which are materialised in the acquisition of tangible or intangible fixed assets, located or received in the geographical area of the ZEC, used in the ZEC, which are used in that area, and which are necessary for the development of the economic activities carried out by the taxpayer in that geographical area, complying with the conditions and for the minimum amount indicated in Article 31 of Law 19/1994.
The creation of jobs in the geographical area of the ZEC within the 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.
Present a descriptive report of the main economic activities to be carried out, that guarantees its solvency, viability, international competitiveness and its contribution to the economic and social development of the Canary Islands, the content of which will be binding for the entity, unless these activities are changed with the express authorisation of the Governing Council.
With regard to the procedure for registering an entity in the Official Register of ZEC Entities, , Article 41 of Law 19/1994 establishes that this registration is subject to prior authorisation from the ZEC Consortium.
To this end, a application must be submitted, accompanied by the report describing the main economic activities referred to in letter f) of Article 31.2 of Law 19/1994.A deposit or guarantee for the amount of the registration fee regulated in Article 50 shall be provided together with this application.
In view of the documentation provided, the Governing Board will proceed to authorisation, after a favourable report from the Technical Commission.
The authorisation by the Consortium Board must be granted, expressly, within a period of 2 months, from the date on which the application is received by the ZEC Consortium.Once this period has elapsed without an express decision, the application for authorisation shall be deemed to have been rejected.
Once authorisation has been obtained, the applicant must submit to the Official Register of ZEC Entities the documents accrediting that the entity has been set up in accordance with the Law.
Registration shall be effected within 10 days, from the day on which the documents referred to in the previous paragraph are submitted.