The notable differences between the branch and the subsidiary, highlighted by our lawyers. Contact us for more details: https://www.lawyersireland.eu/.

1. A presentation brought
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in Ireland
Subsidiary vs. Branch

2. The branch and the subsidiary are the two main ways in
which a foreign company can expand its business
operations in Ireland.
Both have advantages and weighing the pros and the
cons is an important part of the decision process, prior
to starting any incorporation or registration procedure
with the Irish authorities.

3. The main difference between the branch and the
subsidiary lies in the parent company’s liability towards
its Irish counterpart.
For the subsidiary, these are non-existent while for the
branch the foreign company bears all liability.

4. The Irish branch is essentially an
extension of the parent company. It
cannot have a different name or
engage in different business
activities.
The foreign company is liable for its
Irish branch’s debts and liabilities.
The Branch

5. copy of the parent company’s Articles of Association and
Memorandum;
the parent company’s certificate of incorporation in its
country of origin;
financial information on the parent company;
the name of the local representative and other documents,
as needed.
The branch office is registered with the Irish authorities and the
following documents are provided for this step:
The branch registration

6. The Subsidiary
This is a separate legal structure, incorporated as a locally
registered company according to Irish laws.
A common legal entity type chosen for the subsidiary is the
private limited liability company.

7. The subsidiary registration
A subsidiary is incorporated as a local Irish company. This includes
choosing a valid name, drawing up the Articles of Association and
gathering the other needed documents, and submitting the
registration with the Companies Registration Office.
The subsidiary can be registered to perform additional business
activities apart from the ones of the parent company.

8. Branch and subsidiary taxation
Branches and subsidiaries are
subject to the same corporate
income tax rate of 12.5% for
trading companies. Companies
incorporated in Ireland are
considered tax residents and
are taxed on their worldwide
income. Non-residents are taxed
on their Irish-source income. The
Irish branch is subject to tax on
profits and gains.

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