What is a subsidiary in Spain?
Incorporating a subsidiary in Spain (Barcelona, Madrid, Bilbao, Valencia, etc…) requires the creation of an entity with its own legal identity, even though the parent company provides the share capital and manages the subsidiary.
A subsidiary is a company that is wholly or partially owned by another company, referred to as the parent or holding company. It should be noted that a holding company is distinct from a parent company.
It is important to note that a subsidiary is an independent legal entity, with its own management and governing bodies, separate from its parent company. It is considered a resident in Spain and subject to local regulations and laws. It must comply with accounting and tax obligations, file annual accounts, and report other corporate transactions in the Commercial Registry.
It should not be confused with a branch, which is not an independent legal entity and is fully dependent on its parent.
When considering whether to set up a subsidiary company, factors to consider include operating overseas, having different lines of business that need to be formally separated, or having different teams working on separate projects in different locations.
We are Tax Advisors in Spain
Don’t hesitate to contact our team of tax advisors and let us know how we can assist you in setting up your subsidiary in Spain:
How starts in Spain?
Creating a subsidiary in Spain offers several benefits, such as access to the Spanish and European markets, reduced operational and tax costs due to EU treaties, and positioning as an international company with prestige. The process of setting up a subsidiary in Spain typically takes 4-7 weeks and includes obtaining a Tax Identification Number (VAT) for foreign investors, applying for a subsidiary name certificate from the Commercial Registrar, opening a bank account and depositing the capital share, preparing the Articles of Association, signing a public deed of incorporation, and submitting forms to the International Investment Registrar and Commercial Registrar. It is advisable to hire a professional tax advisor to assist with this process.
To streamline the process of setting up a subsidiary in Spain and ensure compliance with all requirements, it is recommended to work with a team of professional tax and legal advisors. Miquel Valls Financial Advisors in Barcelona and Madrid is a reliable and experienced firm that offers personalized and professional services to guide clients through the entire process.
Our team of experts can advise on all aspects of setting up a subsidiary, from obtaining a Tax Identification Number (VAT) to filing annual accounts and reporting other corporate transactions.
By working with Miquel Valls Financial Advisors, you can rest assured that you are in good hands and that all steps and requirements will be taken care of in an efficient and effective manner.
Don’t hesitate to contact our team of tax advisors and let us know how we can assist you in setting up your subsidiary in Spain:
