This article provides information about the steps in opening a branch in the USA in 2026. Explore all the details and then contact our US company formation agents for support.
| Quick Facts | |
|---|---|
| Applicable legislation (home country/foreign country) | For foreign countries |
Best used for | – banking, – financial operations, – insurance |
Minimum share capital (YES/NO) | No |
| Time frame for the incorporation (approx.) | Around 5 weeks |
| Documents to be filed by the parent company | – Articles of Association, – business plan, – specific forms |
| Management (Local/Foreign) | Local, but not mandatory |
| Legal representative required (YES/NO) | Yes |
| Local bank account (YES/NO) | Yes |
| Independence from the parent company | Dependent on the parent company |
| Liability of the parent company | Full liability on the branch office's debt and obligations |
| Corporate tax rate | 21% |
| Annual accounts filing requirements | – balance sheet, – financial reports, – standard forms |
| Possibility of hiring local staff (YES/NO) | Yes |
| Travel requirements for incorporating branch/subsidiary (YES/NO) | No |
| Double tax treaty access (YES/NO) | Yes |
Table of Contents
What are the features of a US branch?
- a branch in the US is a legal extension of a foreign company,
- it has no separate legal personality,
- it reports all the activities to the parent company,
- must carry out the same operations as the foreign enterprise,
- it is controlled by the parent company, respecting the applicable laws in the US,
- it is levied as part of the foreign company’s overall tax filings.
Who issues the approvals for branches in the US?
The Secretary of State where the branch will be incorporated.
Where is a branch incorporated in the USA?
At the Business Division of the Secretary of the State.
What are the key conditions to open a branch in the USA in 2026?
Applicants must:
- obtain the Employer Identification Number (EIN) from the Internal Revenue Service (IRS),
- appoint a registered agent,
- open a business bank account in the US,
- obtain local and federal business licenses.
Here is an infographic about branches in the USA:
What documents are required to set up a branch in the USA?
- a declaration stating the foreign company wants to set up a branch in the USA;
- Articles & Memorandum of Association;
- the Certificate of Authority issued by the Secretary of State;
- a Certificate of Good Standing issued by the parent company;
- information & ID of the appointed representative agent for a branch in the USA;
- an operating agreement (not mandatory but recommended);
- proof of company address/business place in the USA.
Why is an EIN necessary for a branch in the USA?
EIN is the abbreviation for Employer Identification Number, or more precisely, the identification code for a company with commercial activities on the market. This code shows that the company is registered for taxation.
Do I need a business plan for a US branch?
Of course, foreign entrepreneurs who want to open a branch in the USAin 2026 must prepare a business plan in detail. Here is what this document should contain:
- a business plan must comprise projects for no more than 5 years;
- company description – Needs to include details about the business, how it differs from the others on the market, and which markets it is heading to;
- executive summary – Contains clear information about the company’s profile and its goals in the market. You can also add details about the products you want to sell.
We have prepared a video presentation on this topic:
What are the advantages of branches in the US?
- setting up a branch in the USA in 2026 is a fast and straightforward process,
- compliance and formation costs are reduced compared to subsidiaries,
- branches present confidence in the market,
- benefit from flexibility, including in management,
- advantageous from a tax point of view.
What is the taxation of foreign branches in the USA?
- 30% branch profit tax (BPT) imposed on non-invested earnings in the US.
- 21% as tax, Effectively Connected Income (ECI) if foreign branches are connected with a US business or trade.
- 30% as Branch-Level Interest Tax (BLIT) imposed on interest paid by a US branch to foreign owners.
Double taxation treaties signed by the US may lower the amount of taxes imposed on income.
What is the time frame to set up a branch in the USA?
Opening a branch in the USA takes around 2 weeks or a few months, depending on the requirements and documents, if properly prepared.
Ready to open a branch in the USA? Feel free to contact our local team and ask for in-depth company formation services in America.