A Branch Office is a secondary establishment with reference to the Parent Company. The Branch Office has permanent representation and a certain amount of autonomy in terms of developing its activity.
I fan entrepreneur is interested in setting a business in Spain by creating a Branch Office there are some procedures to be done:
- The foreign Parent Company shall carry out an agreement by which the creation of the Branch Office is approved. The agreement and the Parent Company’s bylaws shall be translated and presented to the Spanish Commercial Register.
- The Spanish Consulate of the country of the Parent Company shall issue a document by which certifies that the Company is legally formed, according to the foreign Laws in question. This document shall be legalised or verified with apostille.
- The Company capital, agreed by the Parent Company, shall be paid in any bank and there is no minimum.
- The public deed of constitution shall be signed before the Notary Public.
- The Tax ID Number (NIF) shall be requested in the Treasury Department of the address of the Branch Office. The public deed of constitution and the ID of the company’s representative in Spain shall be attached.
- The Spanish tax on Property Transfer and on document duties and registration fees shall be settled (1% of the company capital).
- The Branch Office shall be registered in the Commercial Register of the address provided by the bylaws within a month from the date of the public deed of constitution. A negative clearance of corporate name is not needed.
- Once the Branch office is created in Spain, the foreign Parent Company shall deposit the annual accounts in the Commercial Register. If foreign Law does not provide annual accounts, only the Branch Office’s accounts shall be deposited.
- The taxation regime of the Branch Office depends on what it is provided be Double taxation Agreements applicable to each case and, where there is none, the Spanish tax on Non-Residents shall be settled. Since it is taxpayer of the said tax, a provisional Tax ID Number shall be requested to the tax Agency.
- Once it is created, a registration in the Foreign Investments Register shall be done.
11. The Branch office shall keep its own accounts during his activities.
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