Foreign companies can set up a company in Germany in the form of a branch when they wish to retain a high percentage of control over their German counterpart. You can rely on our specialists in company formation if you want to set up a branch office here.
| Quick Facts | |
|---|---|
| Applicable legislation (home country/foreign country) | Foreign country |
Best used for | Various types of activities, including banking and insurance |
Minimum share capital | No |
| Time frame for the incorporation (approx.) | Approx. 7 weeks |
| Management (Local/Foreign) | Local or foreign, at the discretion of the parent company |
| Legal representative required | YES for autonomous branches |
| Local bank account | Yes |
| Independence from the parent company | Fully independent entity in the case of the dependent branch, independent entity in the case of the autonomous branch |
| Liability of the parent company | Liability depends on the type of branch established (dependent or autonomous) |
| Corporate tax rate | 15% |
| Possibility of hiring local staff | Yes |
| Special requirements related to the trading name (YES/NO) | Yes, the German branch must use the same name as the parent business. |
Activities permitted | Most types of activities are allowed. |
Restrictions (if any) | Yes, the branch can operate only in the same industry as the parent company. |
| Special licensing requirements (if any) | Yes, for certain industries (banking, telecom), special licenses are necessary. |
| Local address required (YES/NO) | Yes |
| Authority to be registered with | German Trade Register |
| Types of German branches | – dependent, – autonomous |
| Employment registration requirement (YES/NO) | Yes, if the branch office has employees. |
| Option to transfer employees from the headquarters (YES/NO) | Yes, the parent enterprise can decide to relocate personnel to the branch in Germany. |
| VAT registration requirement (YES/NO) | Yes, upon registration |
| Incorporation services availability (YES/NO) | Yes, we offer branch office registration support in Germany. |
Table of Contents
What are the main characteristics of branches in Germany?
Foreign companies that decide to open branches in Germany must be aware of the fact that these entities:
- are considered as a satellite of the parent company;
- from a legal point of view, they are not separate entities with a legal personality, therefore, cannot make their own business decisions;
- must carry out the same activities as the parent company, which enables better control of the latter;
- it must have the same name as the parent company (the trading name must be verified and reserved with the Commercial Register).
These details are also outlined below:
| Characteristic | Details |
| Lighter incorporation formalities | The branch office has to meet only a moderate set of incorporation formalities, compared to the GmbH for example. |
| Minimum operational requirements | The branch also has simpler requirements for management and control. For example, it suffices to appoint one individual as head of the German branch. |
| Liability | The foreign company is liable for the activities of its German branch. |
| Taxation | The branch is subject to the local German tax laws for the profits derived from the country. Double tax agreements apply in case of branches. |
What are the steps in registering a branch office in Germany in 2026?
Just like in the case of a domestic company, the creation of a branch office in Germany will imply similar steps. These are:
- applying for a trading name reservation;
- preparing the incorporation documents;
- filing for Companies Register incorporation;
- obtaining a tax identification number;
- obtaining the business licenses required to operate.
Here is also an infographic on this subject:
What are the documents required to set up a branch office in Germany?
The necessary documents for opening a branch in Germany are the following:
- the notarized articles of association of the foreign company,
- the proof of registration in the foreign country,
- the name of the company and the registered address,
- the reasons why it was incorporated,
- the names of the directors (and the board of managers),
- details regarding the capital of the company,
- the address and objectives of the branch,
- the sum of working capital available in the branch office,
- the date when the decision to open a branch was taken,
- the availability period of the branch,
- the name and addresses of the representatives,
- license (only in special cases).
The Trade Supervision Office must also receive:
- proof of identity of the solicitant,
- the requested state permit,
- a residence permit (for foreigners),
- proof of registration of the foreign company and its translation into German,
- the name of the local representative and its address.
What are the types of branch offices a company can set up in Germany?
The German legislation enables the establishment of:
- independent branches: they are allowed to maintain their own accounts and issue invoices locally;
- dependent branches: in their case, the parent company will issue the invoices and handle the accounts.
Is it necessary for the parent company to appoint a local representative/manager?
Yes, this is a mandatory step when opening a branch office in Germany.
How long does it take to incorporate a branch office in Germany?
The registration procedure can take approximately 2 weeks, provided the documents are in order. However, this timeframe excludes the bank account opening procedure.
Is it mandatory for the branch to have a local bank account? If yes, how long does it take to open it?
Yes, this is a standard requirement for any business in Germany. The procedure of setting up a German corporate bank account is about 4 weeks.
How much does it cost to open a branch office in Germany in 2026?
Here is a breakdown of the costs of setting up a branch in Germany:
- translation and notary fees: they depend on the translation language and the complexity of the papers of the parent company;
- the Commercial Register fees: they also depend on the type of branch to be created, and start at EUR 150;
- the legal fees: our specialists can offer more information on these costs.
IMPORTANT! Please get in touch with our German consultants for a personalized offer if you want to register a branch.
The following video, created by our specialists in company formation in Germany, presents the main characteristics of the German branch:
How is a German branch office taxed?
Branches are subject to the corporate tax, however, only on the profits they make in Germany. An important aspect to consider is that the parent company has the obligation of reporting these profits, and it is also required to submit the annual accounts.
Our partnerships
In case you need assistance for opening a branch office in a different country, for example, in an Asian jurisdiction such as Thailand, we can put you in contact with our partners – ThaiCompanyFormation.com.
In case you need assistance with opening a branch office in another country, for example, in Estonia, we recommend our partners – LawyersEstonia.com.
If you need assistance for setting up a company in another country, for example, in Mexico, we recommend our partners – CompanyFormationMexico.com.
For any other questions you might have regarding the establishment of a German branch for your business in 2026, please feel free to contact our local company formation specialists.