Is it possible to capitalize unemployment benefits to set up an SL?
Posted: Wed Dec 18, 2024 3:37 am
One of the issues that has encouraged many employees to register as self-employed has been the possibility of requesting a lump sum payment to start their business. But the truth is that, if we stick to the letter of the law, this payment is only granted to a self-employed worker or a working partner, whether in cooperatives or labour companies. But what happens with other types of companies? Is it possible to capitalise unemployment benefits to set up an SL?
Many doubts have arisen regarding this legal form. However, thanks to a recent ruling by the Supreme Court, this situation has been clarified, establishing a criterion that will facilitate the creation of companies for those entrepreneurs who opt for this legal form.
Start of marked textShare! Collecting a lump sum and setting up a limited liability company is now possible according to a Supreme Court rulingEnd of marked text
The Supreme Court ruling that clarifies the use of the single payment to set up an SL
Until now, on the one hand, we had the criteria of the State Public Employment Service that did not allow the use of a single payment to set up a Limited Liability Company. In the Supreme Court ruling it clarifies that:
«Establishing a limited liability company is not incompatible with the status of self-employed worker when the legal position of the partner determines his/her mandatory affiliation with RETA»
This is the fundamental question for the High Court, as it argues that although Law 45/2002 only mentions cooperatives and labour companies as companies, this does not mean engineering email list that the rest of the companies are excluded. In this way, it takes a stand against the arguments of the state lawyer who demanded the return of the single payment granted by the SEPE.
Registration as self-employed is an essential requirement
In order to meet the requirements set out by law for the Supreme Court, the applicant argues that there was no undue payment due to being registered as self-employed . In this case, the applicant capitalised the unemployment benefit in a single payment after founding a commercial company of this type. The applicant himself subscribed 100% of the capital, appointed himself as administrator and registered his company in the Special Regime for Self-Employed Workers (RETA) ten days after registering his company in a public deed.
We have already seen that one of the most commonly used tricks to set up an SL until now was to reverse the order of the factors. Request the single payment and register as self-employed, but then set up the company. The requirements for the single payment only indicate that it is necessary to register with the RETA, make an investment that justifies said capitalisation and maintain the activity for three years. Nothing says that said capital cannot subsequently be contributed to a created company.
Many doubts have arisen regarding this legal form. However, thanks to a recent ruling by the Supreme Court, this situation has been clarified, establishing a criterion that will facilitate the creation of companies for those entrepreneurs who opt for this legal form.
Start of marked textShare! Collecting a lump sum and setting up a limited liability company is now possible according to a Supreme Court rulingEnd of marked text
The Supreme Court ruling that clarifies the use of the single payment to set up an SL
Until now, on the one hand, we had the criteria of the State Public Employment Service that did not allow the use of a single payment to set up a Limited Liability Company. In the Supreme Court ruling it clarifies that:
«Establishing a limited liability company is not incompatible with the status of self-employed worker when the legal position of the partner determines his/her mandatory affiliation with RETA»
This is the fundamental question for the High Court, as it argues that although Law 45/2002 only mentions cooperatives and labour companies as companies, this does not mean engineering email list that the rest of the companies are excluded. In this way, it takes a stand against the arguments of the state lawyer who demanded the return of the single payment granted by the SEPE.
Registration as self-employed is an essential requirement
In order to meet the requirements set out by law for the Supreme Court, the applicant argues that there was no undue payment due to being registered as self-employed . In this case, the applicant capitalised the unemployment benefit in a single payment after founding a commercial company of this type. The applicant himself subscribed 100% of the capital, appointed himself as administrator and registered his company in the Special Regime for Self-Employed Workers (RETA) ten days after registering his company in a public deed.
We have already seen that one of the most commonly used tricks to set up an SL until now was to reverse the order of the factors. Request the single payment and register as self-employed, but then set up the company. The requirements for the single payment only indicate that it is necessary to register with the RETA, make an investment that justifies said capitalisation and maintain the activity for three years. Nothing says that said capital cannot subsequently be contributed to a created company.