A branch office represents one of the vehicles available for foreign companies interested in expanding their business operations in a given country. This type of structure provides a set of advantages, but also several disadvantages compared to other legal entities that can be used by foreign enterprises, but this aspect can depend on the national legislation where the branch office will be registered. However, investors should take into consideration the fact that, regardless of the country where the branch office will be set up, the branch office is characterized by the fact that is a dependent structure to its parent company abroad.
The advantages of an Estonian branch office
Due to the fact that the branch is fully dependent to its parent company, this means that the parent company holds the responsibility for its office opened in a foreign country, this being the case of a branch office registered in Estonia as well. The main advantage of carrying business activities in Estonia through a branch office is given by the fact that the investors can avoid opening a company following the standard registration procedure.
Even in this situation, it is necessary to know that the registration of an Estonian branch is comprised of numerous steps. Some of the main advantages of opening an Estonian branch refer to the fact that this entity benefits from simpler accounting requirements and that it is a great vehicle for promoting the activities of the mother company in this jurisdiction.
Why start a business in Belize?
Another business destination that has attracted numerous international investors is Belize, a small state with one of the most solid economies in its region (Central America). The country grew in popularity over the years as being one of the most attractive regions for the registration of an offshore company.
With an economy based on tourism, the export of oil, services industry and others, the jurisdiction also provides several free economic zones, where investors can set up companies incorporated as limited liability companies or branch offices. In order to incorporate a branch office in Belize (registered at the level of the jurisdiction or in one of the country’s free zones), it is necessary to appoint a legal representative who has his or her residency registered there. Investors should know that a branch office set up in one of Belize’s free zones can benefit from numerous tax exemptions.
Reasons for opening a branch in the Netherlands
Investors interested in opening a branch office in Europe can start their operation in the Netherlands, one of the most developed economies in the Community. When opening a branch office in the Netherlands, some of the most common advantages are given by the relatively simple registration procedure and the incorporation costs, which are generally lower compared to the registration of a subsidiary, for example. The Dutch branch office can also benefit from simpler accounting requirements, this being a general principle for branches registered in Europe.