El blog de Maria

The branch is a secondary establishment with permanent representation and autonomy to develop the activities of the parent foreign company.

Branches do not have own legal personality so the steps are different than when making a new company under Spanish rules:  


1.- The Boards of Directors of the parent company must adopt an agreement by which they approve the establishment of the branch. This agreement and the bylaws must be translated by a sworn translator and subsequently filed with the Commercial Registry in Spain.

2. The Spanish Consulate in the foreign country of residence of the parent company,  needs to certify that the parent company is incorporated under the laws of its country.

3. Deposit of the social capital agreed by the parent company in the Bank ( there is no required minimum)

4. A Public Notary deed for the establishment  of the company  must be signed before a Notary public.  

5. Application for Tax identification code of the branch needs to be done before the Tax Office's headquarters. Documents to be brought for the application are the deeds and the Notary deeds of company establishment and the Tax Number of the representative or agent of the company in Spain.

6. Stamp Duty is of 1% ( there may be exemptions  in order to avoid double taxation).

7.  Finally, the branch must get recorded in the Comercial Registry with jurisdcition whre the branch is located within the month following the execution of the deed.
 
Branches are under accountancy obligations for anual accounts to be deposited in the Commercial registry.

The Taxation of the branch depends on the provisions of Double Taxation Conventions applicable to the case, and, failing that, it is taxed as non-residents for all the incomes obtained in Spain.

Inside Alcazar de Sevilla by ReservasdeCoches at Flickr.com