A foreign investor interested in expanding his business in Germany can either open a branch or a subsidiary in this country. However, he should know that these two forms of business differ from one another. See the characteristics of branches and subsidiaries in Germany in our concise presentation. If you need business consultancy, our experienced lawyers in Germany are at your disposal at: http://www.lawyersgermany.com/. In case you are interested in extending your company in Ireland, the team of attorneys at LawyersIreland.eu is ready to offer you consultancy in this matter.

1. Opening a Branch vs. a Subsidiary in
Germany
A presentation brought to you by
LawyersGermany.com
1

2. Investing in Germany >>
• There are different types of companies in
Germany and an entrepreneur can decide
which one suits him better.
• A foreign investor interested in expanding his
business in Germany can open a subsidiary
or a branch office in this country.
• Our German lawyers can offer you details
about each business form available here
and can help you with the registration
procedure.
2

3. • A foreign company should take into
consideration several factors when
choosing between a branch or a
subsidiary.
• Some of these factors are:
>> Investing in Germany
 the German taxation system;
 the purpose of the establishment;
 the costs of opening a company in
Germany.
3

4. Branch Office in Germany >>
• The German branch
office (Zweigniederlassung) is an
establishment that will be connected to the
parent company and it does not own assets
nor does it handle its own accounting
procedures on its own.
• A branch office in Germany is allowed to
conduct the same type of activities as its
head office.
• In Germany the branch office is not
required to register with the Register of
Companies.
4

5. >> Branch Office in Germany
• German branches have to register with the
local trade office.
• The branch office is considered part of
the foreign company and will be subject to
the German taxation system applicable to
them.
5

6. The Subsidiary in Germany >>
• A German subsidiary
(Tochtergesellschaft) is usually
considered a limited liability company
and it must have its own share capital,
management, and accounting system.
• The subsidiary is allowed to conduct
business operations in name of the
parent company.
6

7. >> The Subsidiary in Germany
• A subsidiary in Germany is required to
register with the local commercial register
and the trade office.
• Subsidiaries are subject to the German
taxation system as any other local
business.
• If you are interested in establishing a
subsidiary in Germany, our local lawyers
are at your disposal. All you have to do is to
contact us.
7

8. Branch Office Versus
Subsidiary in Germany >>
• Unlike subsidiaries, branch offices may
find it more difficult to obtain a bank account
in Germany and clients may be reluctant to
entering a business with a branch office.
• In certain cases both a subsidiary and a
branch office may need special certificates
or licenses in order to conduct business
operations in Germany.
8

9. >> Branch Office Versus
Subsidiary in Germany
• The subsidiary will have limited liability
and if any changes occur in the parent
company they will not affect the
subsidiary’s activities.
• However, the fastest, easiest and most
inexpensiveway to start a business in
Germany is through a branch office.
9

10. Legal Assistance in
Germany
• Our German lawyers are specialized in
various legal and company formation
matters and can help you expand your
business in Germany.
• You can contact our law firm in
Germany for more details about the
process of opening a branch office or a
subsidiary in this country.
10

11. Thank you for your
attention!
• Please contact us for more information at:
(+44)203-287 0408
office@lawyersgermany.com
http://www.lawyersgermany.com/
11