25 Oct Subsidiary abroad How do we start?

There are many legal formulas that can be used to establish a business in a foreign country, which usually begin with representation or hiring an agent in the country and, when the time comes and depending on the circumstances, may require the opening of a branch or subsidiary in the country.

The latter is a transcendental option in the business development of a business that requires not only the existence of a solid expansion project on a commercial level, but also a specific strategy on how to carry out this development on a legal level as well as having reliable professionals in the country of destination who are used to working with the professionals in Spain who will have to lead the expansion process.

In all this process, you can count on Navarro Llima Abogados.

Undoubtedly, being established in a given market allows access to it at first hand and to be able to take its pulse directly. Obviously, there must be economic conditions that require this opening up, which may range from establishment in the country with a production structure or the opening of a trading company that allows certain entry requirements to be overcome or the inclusion of a local partner (creating what is known as a Joint Venture or JV) that enables the business expansion that is not allowed to a foreign company, appearing in the market as a local company.

However, the management of all kinds of assets abroad can be a real headache, because the economic, legal and social realities of the countries are really very different and can be real barriers to entry that we were not aware of when we considered this business expansion.

Local control through RBI’s multiple bureaus around the world

One of the most relevant issues is the fact that when a company is incorporated in a foreign country, the legal systems of that country will obviously apply, making it necessary to have a local legal, accounting and tax specialist in that country.

At Navarro Llima Abogados we provide our clients with legal and tax advice on internationalisation, including the legal control of these subsidiaries thanks to the more than 100 Russell Bedford International offices available throughout the world.

Only with the collaboration and co-ordinated work between the local law firm that will manage the legal procedures of the subsidiary and the home office in Spain can you ensure a smooth and hassle-free incorporation and management that minimises the investment of resources throughout the process.

If you have an internationalisation project in which you are considering setting up in a territory outside Spain, do not hesitate to contact Navarro Llima Abogados and do so with all the guarantees.

Don’t miss the next instalments of the blog to find out about the procedures to follow or the legal differences between the different legal formulas for establishment.