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Open a Branch vs. a Subsidiary in Slovenia

Open a Branch vs. a Subsidiary in Slovenia

Updated on Wednesday 20th December 2017

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Open_a_Branch_vs_a_Subsidiary_in_Slovenia.jpgSetting up a business in Slovenia 

Foreign investors are allowed to open companies in Slovenia just as a national citizen would. The options for legal entities are numerous and international companies can choose to open a branch or a subsidiary in Slovenia in order to expand their business.
The choice between these two types of companies lies in the hands of the foreign investor and the scope of the business. Our Slovenian law firm offers complete company incorporation services that are suited for any investor. With our help you will be able to make an informed decision and incorporate the right type of company for your business.

Branches in Slovenia

According to the Slovenian company law, a branch is not a separate legal entity. It is part of an international company and it relies completely on this mother company to operate. Thus, the most important aspect to consider when deciding to open a branch in Slovenia is to keep in mind that the liabilities of the branch will fall upon the mother company abroad. The parent company is accountable for the branch, as the latter does not have any rights or obligations.
The video below offers a short presentation on the advantages of  branch offices and subsidiaries in Slovenia:

Branches have one important advantage: the incorporation procedure is faster than compared to other legal entities in Slovenia. Despite the fact that a branch is not a legal entity in Slovenia, it still has to be registered at the Slovenian court register. Our law firm in Slovenia can give you detailed information about the registration method and the operations that a branch is allowed to perform in Slovenia.

A subsidiary in Slovenia

Unlike the branch, a subsidiary in Slovenia has legal entity and is incorporated as any other Slovenian company. A subsidiary can be a limited liability company or a public limited company. The parent company abroad and the Slovenian subsidiary will have to observe the Parent-Subsidiary Directive. Our attorneys in Slovenia can give you detailed information about the rules governing subsidiaries in Slovenia
A subsidiary will also have to observe all the applicable regulations for taxation in Slovenia. The biggest advantage of a subsidiary, and oftentimes the reason why investors choose this business form, is that the parent-subsidiary structure does not imply any risks for the parent company, as the subsidiary is a separate legal entity.
For detailed information about the company incorporation procedure in Slovenia and other information about doing business here, our Slovenian law firm can offer you numerous legal services


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