Branch vs Branch Representative office
Branch | Representative office | |
Independence | The branch is not perceived as an independent business structure in Poland; in fact, the company abroad is fully liable for its branch’s debts and obligations while it operates in the country.
The branch can run business only the same like father company |
representative office can be only running a business in the field of advertising and promotion. |
Creators /shareholders | Can be established only by business entity | Can be established only by business entity |
Time of lasting | Indefinite | a representative office can be established only for two years with the option of extending for another two years. |
Rule of reciprocity | Foreign business entity (outside EU) can create branch in Poland only on rule of reciprocity in the country of origin | No requirement for rule of reciprocity |
Set up | The branch is registered in the companies court register | Representative office is entered in the register conducted by Ministry of Economy |
Obligations | The branch needs to keep separate books in Poland and comply with the accountancy matters. | Representative office needs to keep separate books in Poland and comply with the accountancy matters. |
Taxation | The branch is taxed at the usual rate on its profits derived from Poland. | Representative office is taxed at the usual rate on its profits derived from Poland. |
Required documents for registration |
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Total costs of registration
including governmental fee* |
750 Euro |
650 EURO |