Having decided to do business in Spain, it may be convenient to establish a branch office locally rather than by incorporating a limited company. This will mean that the branch profits will be subject to taxation as a non-resident company and any applicable double taxation treaty. As a non-resident company, the branch need not have a minimum share capital of 3000 € as does a Spanish limited company.
In order to set-up a branch it is firstly necessary to expressly agree, in the country of origin of the company, according to the rules established by that country, to create a Spanish branch. In the document that creates the Spanish branch, it is necessary to specify who will be the officers – Managing Director, board of directors – as well as a legal representative in Spain. This latter individual must be resident in Spain.
Later, the Spanish branch of the company is created via the issuing of the corresponding public deeds of incorporation before a Spanish public notary. To begin with, before the notary, the Spanish legal representative of the company should be present and the legal representative should have, among other documentation, the deeds of incorporation of the parent company, in order that they may be transferred to the Spanish branch, the agreement to create the Spanish branch and the agreement to appoint the Spanish legal representative.
It should be noted that all of the documentation should be translated by an Official translator, and legalised with the Apostille from the relevant Spanish Consulate or Embassy.