must notify the local municipality

A branch is not a separate le-
gal entity even though contracts may be concluded in its name
To register a branch, the court will request evidence of the
legal existence of the foreign company, copies of the articles of
association/incorporation, the names of all managing directors or
members of management boards and their power of represen-
tation, the amount of registered share capital, the location of the
registered offce, its organization, as well as the names of the
persons who will act for it in Germany. This information and all
subsequent changes must be registered in the electronic com-
mercial register and published on the homepage of the German
Federal Gazette (Bundesanzeiger).

Depending on the type of business the branch intends to con-
duct, it may be necessary – as in case of banking and insurance
– to produce evidence of proper qualifcations and obtain special
permits. The licensing procedures have been relaxed recently as
part of developments within the EU.

Branches are subject to non-resident tax liability in Germany as
soon as they meet the requirements for a permanent establish-
ment