Establishing a branch of your business in a different country can be beneficial in a number of ways, including risk reductions, increased exposure, and global operations.
The branch in your chosen location is fully controlled by the head office in the domicile country, known as the parent company. The parent company therefore has complete liability for the actions of the branch. Branches are mainly used for administration purposes to increase their effectiveness and this makes them a low risk entity.
Although not autonomous, branches have the same accounting and taxation obligations as the parent company in the domicile country. As a result, similar company formation requirements including obtaining a local office, opening a local bank account, and registering with the local commercial register.
Legal existence of the parent company is required before registration of the branch, and presentation of the parent company’s Certificate of Incorporation, Memorandum and Articles of Association, Certificate of Good Standing, and other accounting documentation is typically required. The specific documentation requirements vary with country, as do the taxation requirements and necessary qualifications and authorisations.
Universal Company Incorporations provide a wide range of company formation services to support your company. Our team is experienced with setting up branches in various countries across the world and will enable your company to make the most of your foreign branch. Implementation of the right branch initiatives and solutions will give your business global flexibility and long term growth prospects.