Establishment of a branch office

A branch of a foreign company means a separate part - a self-operating branch - of a foreign company, which is located in a state other than the one in which its parent company has its registered office. Prior to the entry into force of the new Czech Civil Code (NOZ), the branch offices were referred to as the "organizational unit".

The branch office as a branch does not have a separate legal personality. It is subordinate to the founding parent company and its function is to enable a foreign parent company to do business in another state without the need to establish a new independent company.

For entrepreneurs, the establishment of a branch office as a branch is a more economical option compared to the establishment of an independent, completely new company abroad. The branch office is registered in the Commercial Register and its name is identical to the name of the parent foreign company, with the difference that it also contains the appendix "Branch office".

The establishment of a branch office requires the submission of documentation of the parent company in the form and content required by the legislation of the state in which the branch office is established. The branch office of a foreign company is established by registration in the Commercial Register, it must have its own registered office and its own ID number. This branch keeps separate accounts in accordance with the regulations of the state in which it is established. The organizational office, as a branch of a foreign parent company established in the Czech Republic, therefore keeps accounts and pays taxes in accordance with the legislation of the Czech Republic.

Branches of foreign companies have the same rights and obligations as domestic companies. However, their establishment is simpler; when establishing it, it is not necessary to deposit the share capital as when establishing capital trading companies (eg limited liability company, joint stock company or SE)

Our branch office establishment service

Valian.cz offers its clients comprehensive legal and administrative support in establishing a branch office of a foreign company in the Czech Republic. We will carry out all official formalities connected with the establishment of a branch, including negotiations with a notary and at the register court, processing of a trade license, consent to the registered office of the company and entry in the Commercial Register.

Establishment of a branch office for CZK 14,900 without VAT!