Setting up a branch in Germany

Everything you need to know about setting up a company branch in Germany!

Globalization and increasing demand for different products and services have led many companies to open more branches. Therefore, they can offer their goods and services in a more extensive range. In this article from Wise Business Group, we will review important legal information about setting up a branch in Germany.

Important legal information about setting up a branch of a company in Germany

Every company automatically has a head office. It is also possible for companies in Germany to set up any number of branches.

You can set up the branches of a company in the same or another city where the head office is located in Germany, or even abroad.

You may face several questions before deciding to set up a branch in Germany to be answered. For example:

• Is it really easy to set up a branch for a company in Germany?
• Is it necessary to register a branch office of a company in Germany?
• If it is required to register a branch in Germany, what should you consider?

Wise Business Group, as a group of consultants and lawyers specializing in corporate and legal affairs of companies in Germany, will answer your questions in this regard. Contact us to receive a consultation time.

Establishment of an affiliate branch in Germany

From a legal point of view, a company branch in Germany is considered a permanent establishment.

One specific feature of this type of branch is that it affiliates with the company’s head office in many situations. Therefore, it does not have separate bookkeeping and is not allowed to conclude contracts independently.

In addition, in such branches, the delivery of goods is usually done by the main company. For these reasons, affiliated branches in Germany do not have their CEO.

Due to the dependence of this type of branch on the company’s head office, it doesn’t need to register the business and enter into the commercial registry. The affiliate branch is a kind of physical separation from the parent company in Germany.

Establishment of an independent branch in Germany

The situation is different when establishing an independent branch in Germany.

Although the independent branch belongs to a company, it is economically independent.

The difference between an independent branch and a subsidiary in Germany is that an independent branch is not a separate legal entity. However, due to its economic independence, registering a business and entering into the commercial registry is required.

An independent branch office in Germany does the similar or the same businesses as the head office.

Unlike the affiliated branch in Germany, an independent one must have a managing director who has the power of attorney or legal authority.

Because these branches operate independently in Germany, they have separate bookkeeping and payslips for employees. It is also possible for them to conclude a contract independently.

Read more on Wise Business Group: Registering small businesses in Germany

The required information to register an independent branch in Germany

If you want to enter a new independent branch of your company in the German commercial register, you must provide the following information:

• Main office name
• Registered office and subject of branch activity
• Company address
• Number of managers
• Information about the CEO / Representative
• Information on obtaining the domestic license (for branches abroad)

In addition to the above, you need to make a public and certified copy of the following and bring it with you when registering your business in Germany:

• Excerpt from foreign trade registration (only if you reside abroad)
• Articles of association
• Shareholders’ resolutions

Read more on Wise Business Group: Office management in Germany

Summary of legal information on establishing a branch in Germany

If a company wants to set up a branch in Germany, it must determine whether it is an affiliate or independent.

An independent branch can have separate bookkeeping and conclude contracts. It also requires business registration and entry into the German commercial register.

You must provide certain information when registering a branch with the German commercial registrar. This information is often about the location of the branch and its manager.

It is also necessary to enter certified copies of the articles of association and shareholders’ resolutions in the commercial register.

Branch and company registration services of Wise Business Group

If you have more questions about branch offices in Germany and would like to use our private advice, please contact us. Consultants of our group expertise in business and corporate law will be with you when business formation, registering a company, and setting up a branch in Germany. We will help you achieve your business goals in Germany easily and in the shortest possible time.