Choosing between a branch of a foreign company and a local limited liability company (LLC) starts with the proposed activity, contracts, ownership and management arrangements. Registration and bank onboarding are separate processes.
Legal position and responsibility
An LLC is a separate legal entity. A branch operates as part of its foreign parent. Before choosing, review responsibility for contracts and obligations, the parent’s role and any activity-specific restrictions with an adviser.
Management and documents
For an LLC, agree the ownership and management structure and prepare the founding documents. For a branch, assess parent company documents, the branch’s powers and the appointment of its manager. Translation, notarisation and authentication depend on the document and country of origin.
Funding, banking and reporting
Compare how funds will be provided, who signs contracts and who reports to head office. Discuss the chosen bank’s onboarding requirements separately. Tax treatment depends on actual activities and transactions; the legal form alone does not establish eligibility for an exemption.
Questions to resolve before the decision
- What activities and contracts will be carried out locally?
- Who will own, manage and finance the operation?
- Will employees or foreign specialists be hired?
- Which accounts, reports and licences will be required?
- What responsibilities will remain with the parent company?
From decision to operations
After the structure is selected, plan document preparation, the authority’s review, bank onboarding and the start of accounting and payroll as separate stages. Confirm the applicable requirements and timetable for the particular case.
