Do you have an existing business abroad and would like to expand it to Slovenia? The following article will explain the main differences between a branch office and subsidiary to help you decide on the company type.
Branch office – what is the definition?
If you have an existing LTD company abroad, it is possible for you to register a branch office in Slovenia. Both branch office and subsidiary are related to the parent company abroad. The main difference from a subsidiary is that it is not an independent legal entity but a part of the parent company. If the parent company closes, the branch office cannot exist on its own. When establishing a branch office, there is no need for founding capital, which is also one of the differences when establishing a branch office and subsidiary. The branch office can register only the business activities, which the parent company has registered. It means that it cannot offer services different from the parent company. The parent company is also responsible for the branch’s business conduct in case of disputes.
Subsidiary – what is the definition?
In case you already have a registered LTD abroad, you can also establish a subsidiary. As a subsidiary is an independent legal entity, the parent company is not responsible for the subsidiary’s business arrangements. The parent company acts as full or partial shareholder of the subsidiary, otherwise it is separate from the parent company. It requires founding capital at least 7.500 € and is registered as an LTD company type in Slovenia. It can register other business activities than the parent company and provide other services. This also decreases the liability of the parent company, as the subsidiary is only liable for business conduct with the founding capital. The subsidiary is dependent on the parent company only from the economic and strategic point of view.
Branch office and subsidiary – company registration
The difference in company registration between a branch office and a subsidiary is that you have to register a branch office at the notary. A subsidiary is an LTD company, which means that the company registration can be carried out also at our One-Stop shop. A branch office does not require founding capital but a subsidiary does, as it is a type of LTD company.
The distinction between registering a branch office and subsidiary is that the branch office can be registered based on the power of attorney. Registering a subsidiary requires physical presence of the parent company’s representatives in Slovenia when making the registration.
Branch office and subsidiary – what can Data do for you?
Data can assist you to register both a branch office and subsidiary in Slovenia. We can obtain all the necessary documents to register a subsidiary. Also, we can organize the company registration on the day you choose to come to Slovenia.
Data can assist you to understand what documents you would need from the parent company when registering a branch office and subsidiary. Our legal department can prepare the other necessary documents for branch establishment. We can also take the documents for branch establishment to the notary based on power of attorney.
We also offer accounting services for branch office and subsidiary, tax consultation and immigration support if you plan on relocating to Slovenia based on business.
If you plan to establish branch office and subsidiary in Slovenia and move here, contact us for assistance! Write us an email to: [email protected]. You can also contact us via phone: +386 1 6006 270 or +386 40 530 718 (Viber, WhatsApp). You can also follow us on Facebook.