Business Law

Your Business Lawyer in Mijas — Company Formation & Employment Law

Setting up a business in Spain is an exciting step, but the administrative and legal requirements can be complex for those unfamiliar with the Spanish system. As an experienced business lawyer in Mijas, Dolores Perujo guides entrepreneurs and investors through every stage of establishing and running a business on the Costa del Sol — from choosing the right legal structure to drafting airtight commercial contracts and navigating Spanish employment law.

The most common business structure for foreign entrepreneurs in Spain is the Sociedad de Responsabilidad Limitada (SL), the Spanish equivalent of a UK Limited Company or LLC. Recent legislative reforms have reduced the minimum share capital requirement to just €1 (down from the previous €3,000), making it more accessible than ever to incorporate. Our company formation lawyer in Mijas handles every step: reserving the company name, drafting the articles of association, coordinating the notary signing, registering with the Mercantile Registry, and obtaining the company's tax identification number (CIF) and registering with HACIENDA.

For smaller operations, registering as an autónomo (self-employed) is often the simpler and more cost-effective option. We advise on the pros and cons of each structure in terms of liability, tax efficiency, social security contributions, and administrative burden. Our autónomo registration service in Mijas covers the entire process from obtaining the NIE to registering with the RETA (social security for self-employed) and the Tax Agency.

Once your business is operational, our employment lawyer in Mijas ensures that your employment contracts comply with Spanish labour law, your dismissal procedures are legally sound (Spain has strong worker protections), and your commercial contracts adequately protect your interests. We also advise on business acquisitions, franchise agreements, commercial lease reviews, and shareholders' agreements.

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What We Cover

Business Law Services in Mijas

Full legal support for entrepreneurs and businesses operating on the Costa del Sol.

Spanish SL Formation

Autónomo Registration

Mercantile Registry

Shareholders' Agreements

Commercial Lease Review

Employment Contracts

Dismissal Procedures

Business Purchase & Sale

How It Works

How to Set Up a Company in Spain

The key steps to forming a Spanish SL (Sociedad de Responsabilidad Limitada) with our business lawyer in Mijas.

1

Obtain Your NIE

All company directors and shareholders require a Spanish NIE number. We handle NIE applications by power of attorney if you are not yet in Spain.

2

Reserve Company Name

We submit an application to the Mercantile Registry to reserve your chosen company name (Certificado de Denominación Social).

3

Draft Articles & Open Bank Account

We draft the statutos (articles of association), and you open a Spanish bank account to deposit the share capital (minimum €1).

4

Notary Signing

The deed of incorporation (escritura de constitución) is signed before a Spanish notary. We can attend on your behalf with a power of attorney.

5

Register & Activate

We register the company with the Mercantile Registry, obtain the CIF tax number, and register with the Tax Agency so you can start trading.

Areas Covered

Business Law Across the Costa del Sol

Serving businesses and entrepreneurs in Mijas, Fuengirola, Marbella and across the coast.

La Cala de Mijas

Our main office — C/Cártama 25, 29649

Mijas

Business formation & commercial law in Mijas

Fuengirola

Employment & company law in Fuengirola

Calahonda

Business legal support in Calahonda area

Marbella

Commercial & corporate law in Marbella

Estepona

Company formation & employment in Estepona

Benalmádena

Business law for Benalmádena entrepreneurs

Costa del Sol

Full coast coverage for business matters

FAQ

Company Formation & Business Law FAQ

Common questions about setting up and running a business in Spain.

The process of forming a Spanish SL (Sociedad de Responsabilidad Limitada) from initial instruction to a fully registered company ready to trade typically takes 2–4 weeks. The main stages and their approximate timescales are: obtaining NIE numbers for all directors/shareholders (if not already held) — 2–4 weeks; reserving the company name at the Mercantile Registry — 3–5 working days; drafting the articles of association and opening the bank account — 1–2 weeks; notary signing of the deed of incorporation — can usually be arranged within a few days of the bank account being opened; registration at the Mercantile Registry — currently taking 5–10 working days; CIF registration with the Tax Agency — same day or next day. The process can be significantly faster if the directors already hold NIE numbers. Our business lawyer in Mijas manages the entire process and keeps you informed at every stage.

Following recent legislative reforms (Ley Crea y Crece and subsequent regulations), the minimum share capital required to form a Spanish Sociedad de Responsabilidad Limitada (SL) has been reduced to just €1. This is a significant change from the previous requirement of €3,000. However, there are certain conditions that apply to companies formed with less than €3,000 in capital: they must set aside 20% of annual profits into a legal reserve fund until it reaches €3,000, and in the event of liquidation, directors may have personal liability for certain company debts if the capital has not reached the statutory minimum. For most businesses, we advise considering a minimum of €3,000 in practical terms to avoid these restrictions, though €1 is perfectly legal. Our company formation lawyer in Mijas will advise on the appropriate capital structure for your business plan.

The choice between registering as an autónomo (self-employed) or forming an SL (limited company) depends on your specific circumstances including projected turnover, tax situation, personal liability concerns, and administrative preferences. As an autónomo, you pay income tax (IRPF) on a progressive scale (from 19% to 47%), social security contributions are fixed monthly payments (currently around €300/month for new registrants under the tarifa plana scheme), and administration is simpler. As an SL, the company pays 25% corporate tax (Impuesto de Sociedades) on profits (23% if turnover is below €1 million), plus you pay personal income tax on any salary or dividends you extract. For many businesses, the SL becomes more tax-efficient when annual profits exceed approximately €40,000–€60,000. An SL also provides limited liability protection, separating your personal assets from business debts. Our business lawyer in Mijas will analyse your specific situation and recommend the most appropriate structure.

Spain has one of the strongest statutory employment protection frameworks in Europe, and foreign employers are frequently surprised by the rights their Spanish employees hold. Key rights include: minimum of 30 calendar days of paid annual leave (22 working days); 14 public holidays per year; a minimum wage (Salario Mínimo Interprofesional — SMI) that is reviewed annually; statutory sick pay and maternity/paternity leave rights; the right to reinstatement or significant compensation in the event of unfair dismissal; strict rules on fixed-term contracts; rights to collective bargaining; and strong anti-discrimination protections. Employment contracts must comply with both the Workers' Statute (Estatuto de los Trabajadores) and the applicable collective agreement (convenio colectivo) for your industry sector. Our employment lawyer in Mijas drafts fully compliant employment contracts and advises on all aspects of managing staff in Spain.

Dismissal costs in Spain depend on whether the dismissal is classified as objective (fair, for business reasons) or disciplinary (for employee misconduct). For objective dismissal (e.g., redundancy for economic, technical, organisational, or productive reasons): the statutory compensation is 20 days' salary per year of service, capped at 12 months' total salary; a 15-day notice period (or payment in lieu) must be given; and a written reason must be provided. For unfair dismissal (improcedente): the employer must choose between reinstatement or payment of 33 days' salary per year of service since the 2012 reform, capped at 24 months' salary (with transitional rates applying to service accrued before 2012). For disciplinary dismissal that is upheld by a court (disciplinario procedente): no compensation is payable. Given these significant costs, our employment lawyer in Mijas strongly advises employers to seek legal advice before initiating any dismissal to ensure the correct process is followed and costs are minimised.

Company Formation & Business Law in Mijas, Spain