How to expand your branch through a German permanent establishment?

A further possibility of expansion is the permanent business establishment. The term “permanent business establishment” is derived from commercial law and refers to other branches or subsidiaries of the company that are established as business premises but are dependent on the head office. They are therefore branch offices that are not allowed to carry a business name other than that of the head office.

Juristisch gesehen handelt es sich im Wesentlichen um eine einheitliche Geschäftsabwicklung an separaten physischen Standorten. Rechnungen werden auch im Namen des Zentralbüros ausgestellt. Es ist keine Registrierung des ständigen Geschäftszentrums im Handelsregister erforderlich. Jedoch muss jedes ständige Geschäftszentrum bei dem entsprechenden Handelsamt registriert sein.

The details of the head office (business name, registration court, and commercial register number) must therefore be specified on the business letters of the permanent business establishment. In addition, the designation “Regensburg permanent business establishment” can be used. In the case of a head office not registered in the German commercial register, the registration information for the foreign company shall be indicated.

An essential difference between an officially registered branch office and a commercial head office is in the degree of independence of the branch, which the company itself usually determines.