Types of business structures in Spain for foreign investors

Thinking of opening or expanding your business in Spain? One of the first steps is to determine which business structure best suits your needs. Would a representative office suffice? Do you need a branch? Or is it better to incorporate a company?

To help you quickly understand which legal structure fits your situation, we’ve created a downloadable infographic that provides a clear visual comparison between a representative office, a branch, and a company. It’s ideal for foreign companies looking to establish themselves in Spain efficiently and with legal certainty.

Which legal structure suits your business activity?

Choosing the right legal form to operate in Spain as a foreign company depends largely on the type of activity you are going to carry out and the level of establishment you need. Here are some practical guidelines:

Do you only need to conduct market research or auxiliary activities?

A representative office is your best option. It does not create tax obligations in Spain and allows you to carry out activities such as market studies or commercial representation without the need to incorporate a legal entity.

Do you want to sell in Spain while maintaining control from your home country?

A branch enables you to operate commercially in Spain without creating a new company. You will have a tax and accounting presence in the country, but it will remain legally dependent on the parent company.

Do you plan to establish a permanent presence and operate independently?

The soundest option is to incorporate a limited company (sociedad limitada or S.L.) or a stock corporation (sociedad anónima or S.A.). You will have your own legal personality and greater potential for growth and attracting investment. If this is your case, we recommend that you read the steps required to create a company in Spain, where we explain the process in detail.

Not sure which one to choose? Download our infographic and visually compare the business structure options to make an informed decision.

Need help choosing the most suitable legal structure for setting up your business in Spain?

Our team of lawyers specialising in Business and Commercial Law can advise you throughout the implementation process. Check out our advisory service for incorporating companies in Spain!