Opening separate divisions of the company

Opening a separate division of a company is necessary when the company's market expands. It can provide an opportunity to establish more direct contact with potential customers and partners, as well as better understanding of the local requirements and needs.

Valen Group specialists will be pleased to provide services for opening branches/representative offices and simple separate subdivisions.

What is the difference between a branch/representation and a separate subdivision?

A separate subdivision can exist in the form of a branch or a representative office of a company, but also in the form of a simple separate subdivision.

They differ in their organizational structure and legal status:

• For example, a branch/representative office is opened on the basis of a decision of the company's participants by submitting documents to a registration authority, the data on them must be included in the Unified State Register of Legal Entities and the company's charter (for Russian companies).
• A simple separate subdivision of a company has no right to perform the functions of the parent company, is not reflected in the charter and the Unified State Register of Legal Entities and is opened by notifying the territorial tax authority on the basis of an order of the company's CEO.

It is important to note that the differences between a branch/representative office and a separate subdivision may depend on the laws of a particular country. Therefore, when opening a branch/representative office or a separate subdivision of a company, local legal regulations and requirements shall be followed in order to properly establish such a structure.