Set Up a Representative Office in Spain with Marfour

Marfour helps foreign companies enter the Spanish market by setting up a representative office — a practical first step for international growth and future relocation.

What Is a Representative Office and How Does It Work in Spain?

A representative office is a legal structure that allows a foreign company to open a non-commercial presence in Spain. It does not require full company registration, making it a low-risk way to begin exploring opportunities in the Spanish market.

Purpose and Function of a Representative Office

A representative office is intended for activities that support the parent company’s goals without direct profit-making. It serves as a liaison between your home office and the Spanish market.

Typical permitted activities include:

• Representing the company in meetings with Spanish institutions, partners, or authorities
• Conducting local market research and business feasibility studies
• Coordinating promotional activities
• Providing limited administrative support to the parent company
• Monitoring the local market and competition

Legal Restrictions You Must Follow

While the representative office gives you a legal presence in Spain, it cannot function as a full business. The law sets clear restrictions on what it cannot do:

• Cannot issue invoices or receive payment
• Cannot sell goods or services directly
• Cannot hire employees in Spain (outside of the designated representative)
• Cannot engage in profit-generating operations
• Is not registered with the Spanish Commercial Registry

Violating these limitations can result in legal or tax issues, including penalties or loss of residence rights. That’s why it’s important to remain within the auxiliary nature of the office.

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Why Set Up a Representative Office Before Expanding to Spain?

Many international businesses choose this model as a first step toward full entry into the Spanish market. It allows companies to enter the country legally, evaluate opportunities, and prepare for commercial expansion.

Key Advantages of Starting With a Representative Office

• Simple legal setup: Unlike full company formation, this structure requires fewer formalities
• Lower initial investment: No capital requirement or commercial registration
• Legal residence path: Qualifies the representative for residence and work authorization
• Market exploration: Helps your company research, plan, and connect before investing heavily

This model is ideal for companies in early expansion stages who want to understand the Spanish business landscape before committing to commercial operations.

How to Obtain Legal Residency and Work Authorization Through the ICT Route?

Once the representative office is established, the appointed company representative (usually a senior manager or owner) becomes eligible to apply for a residence and work permit under the Intra-Company Transfer (ICT) scheme.

What Is the ICT Residence and Work Permit?

The ICT permit is designed for transferring skilled workers from a foreign company to its operations in Spain. It is commonly used for:

• Senior executives or managers relocating to supervise operations
• Specialists assigned to set up or manage the representative office
• Company owners acting as representatives in Spain

Two Ways to Handle Social Security Obligations

The ICT permit gives flexibility in how the representative is registered for social security:

• Option 1: Register with the Spanish Social Security system
• Option 2: Remain under your home country’s social security using the A1 certificate, if your country has a bilateral agreement with Spain

This allows companies to manage global workforce mobility while remaining compliant in both countries.

What Documents Are Required to Set Up the Office and Apply for the Permit?

Marfour will guide you step-by-step through document preparation, including legal translations and certifications.

Documents From the Parent Company (Your Company Abroad)

• Company incorporation certificate (must be legalized or apostilled)
• Updated registry extract showing company activity and legal representatives
• Letter officially appointing a representative in Spain
• Description of the business and the reason for opening a representative office

Documents From the Appointed Representative (You or Your Employee)

• Employment contract with the foreign company
• Job description clearly linking your role to the new office
• Payslips or proof of regular salary
• Criminal record certificate or police clearance from your home country
• Passport and ID documents
• Proof of health insurance (if not covered by social security)

All non-Spanish documents must be translated into Spanish and legally certified.

Who Should Consider This Option?

This path is suitable for a range of business profiles looking to explore or expand into Spain.

Business Owners Looking to Explore the Market

If you’re a business owner wanting to assess opportunities before launching in Spain, this structure allows you to relocate, research, and build connections legally.

Companies That Want to Transfer Key Staff

Companies can send high-level employees to Spain as representatives to manage operations, prepare for entry, or coordinate international activities.

Businesses That Want to Avoid Immediate Commercial Risk

Setting up a full business entity in Spain can involve taxes, hiring obligations, and reporting. A representative office lets you avoid those obligations during the initial phase.

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Why Choose Marfour to Set Up Your Representative Office in Spain?

At Marfour, we specialize in immigration and business law for international clients. We manage the entire process so you can focus on your expansion.

What We Offer

• Legal assessment of your eligibility and business goals
• Setup of your representative office according to Spanish regulations
• Full preparation and submission of your ICT permit application
• Document review, translation, and legalization
• Ongoing legal advice as you settle and operate in Spain

Ready to Expand into Spain the Smart Way?

Setting up a representative office with Marfour gives you a legal, efficient, and low-risk way to begin your journey in Spain. Whether you’re relocating as an owner or sending a company executive, we’ll make sure every step is done right.

Contact us today to schedule a consultation and get started.