What is the difference between having a Branch Office or a Subsidiary?
Key Differences between a Branch Office and a Subsidiary:
- 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