Branch vs subsidiary: which suits you
A branch is not a new company: it is an extension of your Spanish company operating abroad. A subsidiary, in contrast, is an independent local company with its own capital and liability.
Key points
- Branch: same legal entity, the parent company is liable, faster and cheaper to open.
- Subsidiary: local company, limited liability, better for growing with your own brand.
What branch registration includes
We register the branch in the destination country, obtain its tax number and register it for VAT. We also handle the tax representative if local regulations require it.
Branch obligations
The branch must keep separate accounting and file taxes in the country where it operates. With Filnet, your local advisor handles both so you stay compliant without spending time on it.
When to choose a branch
A branch makes sense for one-off operations or when you want to keep a single legal structure. For a long-term commitment with local hiring, a subsidiary is usually more efficient.
