The glossary to understand and take action

Branch

A branch is an establishment attached to a company, to be distinguished from a subsidiary incorporated as a separate company.

Notion comptable, fiscale ou juridique · Luxembourg Fiduciaries Editorial Team · Reviewed on

Understand the scope

Definition and points to distinguish

The choice of establishment must take into account powers, liability, registration, activity and taxation. The absence of a separate company does not mean there are no obligations in the country where the establishment operates.

In your file

What this changes in practice

A branch is an establishment of a company that retains a legal link with it, as distinct from a subsidiary with its own legal personality. Opening one requires reviewing registration, authorisations and liabilities. The accounting and tax obligations of the establishment must be specified. Its presence may also raise the question of a permanent establishment, depending on the facts and applicable rules.

A scenario to help you understand

Educational example

A foreign company opens an office in Luxembourg. It compares a branch with a subsidiary, taking account of liability and local obligations.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Distinguer succursale et filiale
  • Vérifier les formalités locales
  • Analyser le rattachement fiscal

The practical question

Find out more

Une succursale possède-t-elle la même autonomie qu’une filiale ?

La succursale reste une implantation de l’entreprise, alors qu’une filiale constitue une personne morale distincte. Cette différence affecte notamment les responsabilités et l’organisation des comptes et pouvoirs. Comparez les deux solutions selon le projet réel, sans réduire le choix au coût d’immatriculation. Les conséquences fiscales et réglementaires doivent aussi être examinées.

Connecting concepts

Terms to know as well

Continue with the concepts, contacts and procedures related to this topic.

Permanent establishmentA permanent establishment is a concept linking an activity to a territory, assessed under the relevant tax framework.RCSThe Trade and Companies Register (RCS), managed by Luxembourg Business Registers, centralises registrations and filings for the persons and entities concerned.Business permitThe business permit allows the pursuit of activities subject to it, where the conditions relating to the business and its manager are met.Economic substanceEconomic substance refers to the actual elements of organisation, resources and decision-making assessed in the analysis of an activity or structure.DomiciliationCompany domiciliation organises, in situations provided for by law, the establishment of a registered office with an authorised third party and the agreed services.Registered officeThe registered office is a company's statutory address, linked to its legal organisation.

Put it into practice

Explore further with our guides

Practical guideSetting up a business in Luxembourg: assessing the feasibility of the project

Sources and verification

References consulted on 20 September 2026. Official procedures specify the applicable conditions and exceptions.

This guide explains a general process. The applicable rules depend on your situation; it does not constitute personalised advice. Report a correction.

A definition gives you a reference point. To examine your situation, clarify your question with a professional.