Expanding your existing business into Spain through a branch is an efficient way to enter the Spanish market without establishing a completely new legal entity. A branch operates as an extension of the parent company, maintaining its legal dependency while allowing local operations, invoicing, and hiring. This is ideal for foreign companies that want a permanent presence in Spain without forming a separate company.
STEP-BY-STEP PROCESS
At Lawhill, we simplify the entire process of setting up a branch for you. Here’s how we do it:
- Appoint a legal representative
A local representative must be appointed to act on behalf of the parent company. This person is responsible for managing the branch and fulfilling local compliance obligations. - Obtain a NIE for the representative
If the appointed representative is a foreigner, they must obtain a NIE (Número de Identificación de Extranjero), Spain’s tax identification number for foreigners. - Certify and translate parent company documents
The parent company must provide certified and apostilled copies of key corporate documents (e.g. articles of association, certificate of incorporation, company registry excerpt). These must be officially translated into Spanish. - Draft and sign public deed of establishment
A notary in Spain must prepare and notarize the public deed that formally registers the branch. This includes information about the parent company, the branch, and the local representative. - Register with the mercantile Registry
Once the notarial deed is complete, the branch must be registered with the local Commercial Registry to obtain legal status in Spain. - Obtain the tax identification number (NIF)
The branch must apply for a NIF with the Spanish Tax Agency (Agencia Tributaria). This is essential for tax filings, invoicing, and opening a bank account.
KEY REQUIREMENTS
Certified and apostilled copies of the parent company’s Articles of Association, Certificate of Incorporation, and proof of registration must be provided. These documents must be officially translated into Spanish.
The branch must obtain a NIF to operate legally and fulfill tax obligations in Spain.
The branch must appoint a legal representative who will act on behalf of the parent company. This person must obtain a NIE (Foreigner Identification Number).
A branch must have a registered office in Spain. We can provide a registered address to meet this obligation.
WHY CHOOSE A BRANCH?
Forming a branch offers strategic and operational benefits for international companies aiming to grow in Spain. Key advantages include:
- Local presence with central control: Operate locally while staying legally tied to the parent company.
- Lower administrative burden: Fewer formalities than setting up a new company.
- Tax efficiency: Branches are taxed on Spanish-sourced income only, with double tax treaties often reducing overall tax exposure.
- Brand and business continuity: Extend your existing operations and reputation seamlessly into the Spanish market.
- Access to EU opportunities: Benefit from Spain’s position in the European Union for trade, talent, and funding.
ADDITIONAL SERVICES
At Lawhill, we provide comprehensive accounting and payroll services tailored to meet the needs of your business. From bookkeeping to tax filings, we ensure your financial records are compliant with Spanish regulations. Our team handles payroll management, ensuring timely and accurate payment for your employees.
Navigating the banking system in a foreign country can be challenging. We assist you in opening local and international bank accounts, guiding you through compliance requirements and documentation. Whether for operational needs or capital deposits, we streamline the process to secure your accounts efficiently.
Establish a professional presence in Spain with our virtual office services. We provide a legal address required for company registration and offer correspondence management to ensure you never miss important communication. This service is ideal for businesses operating remotely or without a physical office in Spain.
Certain industries in Spain require specific licenses to operate legally. At Lawhill, we help you obtain necessary licenses such as transport, pharmaceutical and temporary employment licenses. Our experts ensure the application process is smooth, saving you time and effort while adhering to all legal requirements.
We offer a full range of legal services tailored to businesses, including contract drafting, regulatory compliance, dispute resolution, mergers, and acquisitions. Our experienced legal team ensures that your business is fully protected and operates within the framework of Spanish and EU laws.
F.A.Q
The process typically takes 3 to 6 weeks, depending on the completeness of documentation and administrative times.
A branch is subject to Spanish Corporate Income Tax on profits generated within Spain. However, double tax treaties may help avoid double taxation.
Yes. Once registered, a branch can open a Spanish bank account, hire local staff, and carry out commercial activities.
No. A branch is legally dependent on its parent company, which remains fully liable for its operations.