Chartered Accountants◆Practising since 2016

Spain to India · Structure

Choosing an Indian entity for a Spanish parent

CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375 · Updated

In brief

A private limited subsidiary suits almost every Spanish business that will hire, sell or contract in India. A branch or liaison office needs approval through an authorised dealer bank and only suits a defined role; an LLP is limited to sectors open to 100% foreign investment under the automatic route.

What is specific to Spanish companies

Spanish infrastructure companies sometimes start with a project office for a specific contract, then incorporate a subsidiary as their pipeline grows.

How the Spanish side affects the choice

Spain's participation exemption can exempt dividends from qualifying foreign holdings.

Our services

How SU and Company helps

We compare the options against the Spanish parent's plans and give a written recommendation before any filing.

  • Activity and FDI route check
  • Tax comparison of subsidiary and branch
  • Eligibility check for branch or liaison office approval
  • Joint venture shareholding and FEMA pricing points

Questions

Is a branch office a good option for a Spanish company?

Only for a narrow, approved activity. A branch is taxed at the foreign company rate and exposes the parent directly, so most groups prefer a subsidiary.

General information as at 5 November 2026, not advice for a particular case. Indian and Spanish rules change often; confirm the current position before acting. Spanish law points should be confirmed with a Spanish adviser.

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