Establishing a branch or subsidiary in Spain
If you already have a company in your country and want to set up a company in Spain, in addition to setting up an independent limited company, you will have the possibility of setting up a Spanish branch or subsidiary.
We summarize below the main existing legal and tax differences. In order to make a decision on your specific case, a detailed analysis by our taxation specialised lawyer will be necessary.
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“SUCURSAL” (SUBSIDIARY) |
“FILIAL” (AFFILIATED COMPANY) |
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Minimum Capital |
Capital is not required for the creation of a branch, although it is recommended to provide it for practical reasons. |
Limited Company (S.A.): 60,000 euros Limited Liability Company (S.L.): 3,000 euros |
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Legal Entity |
No (it does not have its own legal entity but is the same legal person as the parent company). |
Yes. |
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Administration and government body |
Resident representative in Spain (who acts as a proxy for the branch on behalf of the parent company for all purposes, and in particular for tax purposes). Read more about our representation and management services for companies here. |
Board of shareholders and administrative body. |
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Shareholders’/Partners’ Responsibility |
There is no limit to the liability of the parent company. |
The responsibility of the shareholders/partners of an S.A. or S.L. with respect to the debts of the affiliated company is limited to the amount of its capital contributions (with some exceptions). |