Branch And Subsidiary
THE DIFFERENCE BETWEEN BRANCH AND SUBSIDIARY
(Article 179 The uniform act relating to general commercial companies and the GIE of OHADA)
A company is the parent company of another when it owns more than half of the capital in the second company.
N.B. It can indeed own 100% of the shares in the second.
The subsidiary differs from the branch in that although controlled, it is independent of the company since it has its own legal personality.
N.B. It can indeed own 100% of the shares in the second.
The subsidiary differs from the branch in that although controlled, it is independent of the company since it has its own legal personality.
The subsidiary cannot make an extraordinary decision without the agreement of the parent company.
Given that a quorum must be reached for any extraordinary decision to be binding, ie the representative of the parent company must be present at each meeting.
Also, the subsidiary allows the parent company to participate in the management of the joint subsidiary.
After discussing the possible and the cons with my clients, we proceeded with the different steps required by law.
I will be happy to accompany you in the registration of your subsidiary.