Open a Branch in USA

Updated on Wednesday 02nd June 2021

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Foreign investors interested in expanding their operations on the American territory can consider opening a branch which can activate through a corporation in USA. Setting up a branch in USA is subject to varied conditions, but for a better understanding of how such business entities can be created in one of the USA’s states, we advise you to talk to your team of company formation specialists in USA. Please bear in mind that each state has its regulations when it comes to the business environment.

What to consider when opening a branch in USA in 2021

From the beginning, we mention that a branch is not a separate legal entity, as it has to report all the operations and profits to the parent company from overseas. If you would like to set up a branch in USA, you must understand the conditions imposed in this sense, and the first one is related to the legal way in which you can activate on the market. A branch in USA can be set up as a corporation, in complete respect with the applicable legislation related to registration, business, and taxes in the chosen state. The process of incorporation of a branch in 2021 starts with the Business Division of the Secretary of State in which you want to set up the activities. One of our agents can tell you more about the formalities for branches in 2021 in USA.

Filling the required forms and paying the fees are extra requirements after you have submitted the Articles of Association of the parent company. Moreover, these documents must contain information about the new business office in USA and about the registered agent who can be a natural person or another company, but observing the condition of having residency in the state where the branch is set. It is good to know that the state of Delaware is a preferred destination for business, as it has a favorable tax system which involves benefits for foreign entrepreneurs. Please bear in mind that for opening a branch in USA, the following information must be provided:
  • the name of the owners;
  • the board of managers;
  • the business address. 
Instead of worrying about the incorporation process of a branch in USA, we suggest you address your inquiries in this sense to our company formation agents in USA. We can help you open a company in USA in any chosen state you wish to do business.

Other requirements for opening a branch in USA

Even though it is not a preferred business structure in USA, due to the applicable taxation of the company’s profits, branches can be easily set up in 2021. As it is known, such business forms must respect the US legislation in this sense, including the rules and regulations regarding the payment of the federal and state income tax on the worldwide income. As for the dividends of such corporation with establishments in USA, these can be exempt from taxation if the USA has signed a double tax treaty with the foreign country from which the branch comes from. Starting a business in USA is subject to fewer requirements and bureaucracy, but it is best to talk to our local advisors in this sense.
If you would like to know more about how to open a branch in USA, please contact our team of company formation representatives in USA.