What are the requirements to open a branch in Spain of a foreign banking entity that is a non-resident of the European Union?
- Spain
- 10/08/2002
Spanish law establishes the following requirements to open a branch in Spain of a foreign banking entity that is a non-resident of the European Union: (1) Registration with Spain’s Mercantile Registry and the Bank of Spain; (2) Instead of a minimum capital requirement, the branch is required to have permanent funds available to cover its obligations; (3) The branch must have two directors, with established business and professional reputations, and sufficient knowledge and experience to manage the operations of the branch; (4) The branch may not conduct activities that it is not authorized to carry on in the country where its headquarters is located; (5) The foreign applicant must verify that it is authorized to conduct banking activities in its country, as well as form banking branches.
Authorization to open a banking branch in Spain may be refused for failure to meet the above requirements, or for lack of reciprocity in the country of the applicant.
