BRANCH

A branch is the autonomous and durable commercial establishment of a company. It is equipped with a direction distinct enjoying a certain autonomy and able to trade with the thirds. Geographical extension of the principal company, the branch does not lay out of a legal Personality distinct and could not thus have clean Patrimoine. When a branch contracts, it is in fact the parent company which engages.

The Court of justice of the European Communities has, in a stop of the November 21st 1978 (RJDA 8-9/95 n° 1062) indicated that a branch supposes “a center of operations which appears in a durable way towards outside like the prolongation of an head office, equipped with a direction and materially equipped in order to be able to negotiate businesses with thirds, in way such as those, while knowing that a bond of possible right will be established with the head office whose seat is abroad, are exempted to address itself directly to this one and can conclude from the businesses in the center of operations which constitute of it the prolongation” .

If a branch inevitably does not carry on all the activities of the head office, she carries on at least the principal activities of them.

See too

  • Subsidiary

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