Overview of company structures

What is the difference between having a Branch Office or a Subsidiary?

Key Differences between a Branch Office and a Subsidiary:

Branch Office

  • is an extension of the parent company and is not a separate legal entity.
  • liabilities incurred by the branch office extend to the parent company,
  • must be the same name as the parent company and enters into contracts under the parent company name,
  • activities are limited to the activities of the parent company,
  • must file branch as well as parent company accounts
  • must appoint at least one local authorised representative

Subsidiary (Limited liability company)

  • is a separate legal entity from the parent
  • has limited liability at the subsidiary level
  • can have the same or different name as the parent
  • activities can be similar or different from the parent company,
  • must file accounts of the subsidiary only
  • must appoint at least one local resident director