Business
Private MIPYMES authorised in 2021 alongside state enterprise
For decades private companies were not permitted, and Decreto-Ley 46/2021 marked a structural change by authorising micro, small and medium enterprises, the MIPYMES, which may be private, state or mixed and hold legal personality. Foreign investment is governed separately by Ley 118/2014, which allows joint ventures, international economic association contracts and wholly foreign-owned companies, subject to approval. The Mariel Special Development Zone offers a distinct incentive regime.
Key rules
- Jurisdiction — National; MINCEX for foreign investment, MEP for MIPYMES
- Deadline — MIPYME registration: approval by the Ministerio de EconomÃa y Planificación before operating
- Deadline — Foreign investment: approval by the Consejo de Estado or the relevant ministry depending on the sector
Governing law
- Decreto-Ley 46/2021 sobre las MIPYMES
- Ley 118/2014 de la Inversión Extranjera
- Decreto-Ley 49/2021trabajo por cuenta propia
- Decreto-Ley 356/2018Zona Especial de Desarrollo Mariel
In practice
The MIPYME reform is genuinely new rather than cosmetic, because these entities have their own legal personality, can hold bank accounts and can import and export through state intermediaries, but their number of employees is capped and their activity remains subject to a list of prohibited sectors. Foreign investors continue to face the practical constraint that labour is normally contracted through a state employment entity rather than hired directly.