What is a branch?

WHAT IS A BRANCH?

A trading company can have one or more branches where it performs its activities.

A branch office is established by a decision made by the competent body of the company in accordance with the statement of incorporation of the company or the social contract, i.e. the company's statutes.

The decision to establish a branch office must be certified by a notary public.

Branches are not legal entities. Through their business, the company acquires rights and obligations. The branch operates under its own company and must state its headquarters and the headquarters of the founder.

The decision on the establishment of the branch states:

1. company and headquarters of the founder and company and headquarters of the subsidiary,

2. branch activities,

3. first and last name, or first and last names, personal identification number and residence of persons in the branch authorized to represent the founder in the operations of the branch.

Registration of the branch in the court register

The branch is registered in the court register of the court competent for the place of the founder's seat.

The founder submits the application for registration of the branch in the court register to the court competent for the place of the founder's seat. An application for entry of a change of entry in the court register is also submitted to that court. The application is accompanied by a decision on the establishment of a branch office.

In the application for registration of a branch in the court register, the following must be stated:

1. company and registered office of the founder and company and registered office of the subsidiary i

2. first and last name, or first and last names, personal identification number and residence of persons authorized to represent the founder in the business of the branch.

After registration in the court register of the court competent for the place of the founder's seat, that court ex officio delivers to the registration court of the branch's seat a copy of the application for registration with attachments, an original or a certified copy of the decision on registration on paper or electronically in accordance with a special regulation.

A branch office can also be established remotely, using electronic means of communication.

Termination of branch office

Branch ends:

1. if the founder makes a decision to terminate the branch,

2. if the founder ceases to exist.

The provisions of this Act on the deletion of a company from the court register shall be applied accordingly to the deletion of a branch from the court register.