Place of business

In some countries there are two regimes for registration. In addition to a branch there is a place of business.

A 'place of business' is for companies their activities in the foreign country are not sufficient to define it as a branch. Such activities might include internal computer processing, warehousing, or simply a representative office.

Comparison of the Two Regimes

The two regimes overlap to a certain extent and it is intended that if the operation set up by the overseas company satisfies both sets of criteria then a branch would be set up without the need for a separate place of business registration.

However the decision whether to set up a branch OR a place of business is usually based upon how the overseas company intends to trade in a foreign country. If it is the intention that the company will actively trade in there, eg make sales and generally trade, then a branch would be the appropriate vehicle. Alternatively, if the overseas company simply wishes to establish a presence, for example to establish business connections or deal with internal administration but not actively make sales or trade, then a place of business may be the appropriate vehicle.