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Knowledge Centre

Overview of company structures

What is the difference between having a Branch Office or a Subsidiary?

  • Key Differences between a Branch Office and a Subsidiary:

    Branch Office

    • 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