Comparing business locations and branches

  • 06/10/2022 15:49

1. What is a corporate branch?

🔅 A branch is a dependent unit of an enterprise, responsible for performing all or a part of the enterprise's functions, including the function of an authorized representative.

🔅 The branch performs both purchase and sale transactions (according to the lines of business of the parent company) to generate revenue and has the function of conducting law-related activities as assigned and authorized by the head office.

🔅 Depending on the purpose of establishment, the branch of the company has the right to choose either the dependent accounting form or the independent accounting firm.

2. What is the place of business?

✔️ A place of business is a place where a business conducts a particular business.

✔️ A business location is a place to conduct purchase and sale transactions in many different provinces and cities in order to: Reduce transportation costs, increase revenue or create favorable conditions in customer care...

✔️ The business location of the enterprise may be outside the registered address of the head office.

3. Compare business locations and branches:

4. Which form should customers choose?

⏩ For business locations:

✔ Simple establishment profile.

✔ Simple dissolution procedure.

✔ Cost savings.

✔ Convenience in customer care.

✔ Suitable for small-sized businesses because of reduced taxes to be paid.

⏩ For branches:

✔ Active in the process of operation.

✔ Actively choose the accounting method.

✔ The establishment of branches in provinces and cities (regions that generate high revenue for businesses), will save maximum transportation costs. At the same time, bringing trust, convenience as well as good customer care service to customers. That is why businesses and corporations choose to set up branches in many big cities and provinces instead of business locations.

✔ Branches have their own tax code, so there is no need to go through procedures for issuing tax code 13 like business locations.

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