Limited with branch

Non-resident entities may carry out transactions through a branch in a foreign country (see your local Business act).

A branch is an organisation depending on its head office situated abroad. This organisation is not a legal entity of its own and is submitted to the legislation in force of the country of origin when referring to its relations with third parties. A branch is a part of a company that is organised so as to conduct business on behalf of a company as opposed to carrying on business which is merely ancillary or incidental to the company's business as a whole. In other words a person will be able to deal direct with a branch of the foreign company rather than with that company in its country of incorporation.

Generally speaking, the requirements, procedural formalities, accounting and initial costs for a branch are very similar to those for the constitution of a subsidiary.

What is the sense of a branch?

Incorporating a local branch in another country can offer several advantages for a company:

1. Market Expansion: Establishing a presence in a new market, aiding in brand recognition and customer reach.

2. Regulatory Compliance: Easier compliance with local laws and regulations, which can vary significantly from the parent company's home country.

3. Tax Benefits: Potential access to favorable tax treatments or incentives offered by the host country.

4. Operational Efficiency: Local branches can be better accepted by the customers.

5. Risk Management: Diversifying operations across countries can spread risks, particularly in volatile markets or political climates.