Have you just embarked on a new business on the Costa del Sol or are thinking of taking the plunge? Before you do read our tips below.

Company formation or Self Employed (Autonomo)

In Spain limited companies are known as S.L. companies which stands for Sociedad de responsabilidad limitada. It costs around 1500.00 euros to setup and you must have 3005.00 euros share capital. It takes between one and two months to complete the process. The first step is to find out if your chosen company name is available. An accountant known as a gestor in Spain can take you through the process and complete the relevant paperwork on your behalf.

It is also possible to trade as 'autonomo' which is a self employed status. This is a quicker process, has lower operating costs and requires less administration. It is ideal for people who would like to trade legally and invoice clients. Often people start out as autonomo and then progress to a limited company once the business has taken off. Again it is advisable to speak to an accountant. They will assess your individual needs and advise you accordingly.

Cultural differences

If you are used to things being done yesterday then get prepared for a culture shock. On the Costa del Sol everything takes time. It is quite normal to form a limited company in the UK within 24 hours. In Spain expect this to take between one and two months to complete the full process (see above). In big cities there is a sense of urgency when it comes to business. Not here. It's not all bad though. People often move to Spain for a change of pace and are tired of the daily pressure. While the speed or lack of can be frustrating to begin with, you will find that you do get used to it and eventually fall in with the general rhythm. The plus side is enormous, siestas, plenty of time to have a relaxed lunch and actually digest your food. Better working hours and plenty of time to spend with family and friends.

Language

On the Costa del Sol in particular a lack of Spanish will not prohibit you from running a business especially if your customers are English speaking.  Your accountant will take care of your legal requirements and explain everything in English. All this being said it is advisable to learn the language as it opens your market up and let's face it, if you come to live in Spain it's worth learning the language beyond ordering a cervesa at the local bar.

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