Representative Office for foreign investors
Apart from setting up a subsidiary or a branch, foreign investors may operate in Spain via a representative office.
Features of a Representive Office
- It does not have its own legal personality independent from the parent company.
- The parent company is liable for the debts incurred by the representative office.
- Representative office is not allowed to carry out business activities. A representive office advisable for foreign companies carrying out preparatory or auxiliary activities in Spain, such as market research, coordination, collaboration or promotion.
- No formalities are required to open a representative office and no need to be registered at the Commercial Registry.
- The parent company should apply for a Spanish tax number (NIF).
Steps to create a representative office in Spain
The foreign company should pass a corporate resolution regarding:
- The decision to set up a representative office in Spain.
- The appointment of a representative in Spain to whom certain powers are granted. A representative office does not have any managing body but a person who acts on behalf of the parent company.
This document must be notarised and legalized or apostilled and translated into Spanish.
The notary public may validate the existence and activity of the foreign company in the same deed. Otherwise, a separate certificate from the commercial registry that proves the existence of the foreign company is required.
The above document will be sent to Spanish Tax Authority (along with the official form 036) for registration and a tax number (NIF) will be issued.
