• A branch office has the parent company being responsible for its liabilities while a subsidiary company is responsible for all its liabilities. In as much as both are enjoying the same low tax rates, the main difference is that assessing the profits of a branch office is difficult than assessing the profits of a subsidiary. Hence there may be difficulties when it comes to what is to be taxed.
  • There is no separate MAA (Memorandum and Articles of Association) for a branch office and is therefore not required for your foreign branch registration.
  • In a branch office, the name and activities must be the same as that of the parent company.
  • A subsidiary company is preferred by Small and Medium Enterprises (SMEs) while a branch office is preferred by large corporations.