In a previous post, we provided an overview of the role of notaries and the range of documents they work with. A notary (usually Notary Public in England and Wales) principally specialises in authenticating documents for use abroad. In this post, we focus on notarial requirements for businesses looking to open subsidiaries in a foreign country.
A subsidiary, sometimes called a daughter company, is an autonomous, separately incorporated entity able to share assets and intellectual property with its parent company. Opening a foreign subsidiary company is an exciting move for businesses looking to break into new markets but it requires research and careful planning. It is highly likely that business documents and transactions will need to be translated into the language of the target market during of the course of creating a subsidiary. These translations often need to be authenticated by a registered notary.
Notarial requirements may differ depending on the country so companies must ensure that they are aware of the prerequisites of setting up in their target market. As subsidiaries are legally independent, they must go through the legal registration procedures in their host country, just as a normal Limited Liability Company would.
At WTE, we frequently translate documents for businesses setting up in Spain. Notaries play an essential role as they can help to procure a certificate of availability of the company name, deposit capital into the company account, and prepare the public deed of incorporation. We’ve also noticed a particular demand for Russian translation in this area. In Russia, company registration applications may need to be notarised, and notaries public assist with the submission of all the necessary documents to register new companies. Additionally, Powers of Attorney, bank statements, or identification documents may need to be submitted to a notary.
If you’re looking to establish a subsidiary abroad, seek advice about the process beforehand so that you can make informed decisions and plan for a seamless launch in your new market. We regularly work in partnership with notaries to provide the necessary documentation in the correct language, so do not hesitate to get in touch with your queries.