Foreign investors interested in expanding their operations on the American territory can consider opening a branch that can be activated through a corporation in the USA. Setting up a branch in the USA is subject to varied conditions, but for a better understanding of how such business entities can be created in one of the USA’s states, we advise you to talk to your team of company formation specialists in the USA. One should consider that each state has its regulations when it comes to the business environment.
| 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 to consider when opening a branch in the USA in 2025
From the beginning, we mention that a branch is not a separate legal entity, as it has to report all the operations and profits to the parent company from overseas. If you would like to set up a branch in the USA, you must understand the conditions imposed in this sense, and the first one is related to the legal way in which you can activate on the market. A US branch can be set up as a corporation, with complete respect to the applicable legislation related to registration, business, and taxes in the chosen state. The process of incorporation of a branch in 2025 starts with the Business Division of the Secretary of State in which you want to set up the activities. One of our agents can tell you more about the formalities for branches in 2025 in the USA.
Filling out the required forms and paying the fees are extra requirements after you have submitted the Articles of Association of the parent company. Moreover, these documents must contain information about the new business office in the USA and about the registered agent who can be a natural person or another company but observing the condition of having residency in the state where the branch is set. It is good to know that the state of Delaware is a preferred destination for business, as it has a favorable tax system that involves benefits for foreign entrepreneurs. Please bear in mind that if you want to open a branch in the USA, the following information must be provided:
- the name of the owners;
- the board of managers;
- the business address.
Instead of worrying about the incorporation process of a branch in the USA, we suggest you address your inquiries in this sense to our company formation agents in the USA. We can help you open a company in the USA in any chosen state you wish to do business with. You can also discover the infographic below for details on this topic:
Obtain the EIN 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. Even a US branch must comply with the charging rules, so do not hesitate to talk to our team and find out what steps to follow in this direction.
Even if you don’t live in the USA, you can open a branch, without complications. As soon as you choose the business structure, preferably LLC, you must register for the payment of taxes. There is no need for a green card to be eligible for such a business type in the USA.
Tax requirements for opening a branch in the USA
Even though it is not a preferred business structure in the USA, due to the applicable taxation of the company’s profits, branches can be easily set up in 2025. As it is known, such business forms must respect US legislation in this sense, including the rules and regulations regarding the payment of the federal and state income tax on worldwide income.
As for the dividends of such corporations with establishments in USA, these can be exempt from taxation if the USA has signed a double tax treaty with the foreign country from which the branch comes. Starting a business in USA is subject to fewer requirements and bureaucracy, but it is best to talk to our local advisors in this sense.
Opening a branch in the USA as a foreign investor can seem difficult without specialist help. We recommend the services of our local agents who can take care of all the formalities. Thus, this structure can be ready in approximately 5 weeks, including the opening of a bank account for the company’s future operations.
Do I need a business plan for a US branch?
Of course, foreign entrepreneurs who want to open a branch in the USA 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.
- Market research – Every business needs market research, especially if it will develop in a foreign country, as is the case with foreign branches in USA.
- Company organization – Information about company management is required.
- Product and service information – A business plan must provide detailed information about the products and services to be placed on the market.
- Marketing and sales – Marketing and promotion plans can be included in a business plan.
These are some ideas that should be included in a business plan if you want to open a branch in the USA. You can receive more information in this direction from our team of local agents who can deal with the registration of your company with the relevant authorities. Plus, we have prepared a video presentation on this topic:
Advantages of branches in the USA
Registering a branch in the USA is quite easy, as long as you follow the rules imposed by the authorities. Being an extension of the parent company, the branch can be managed quite simply, without the need to appoint managers or directors. In addition, the registration process is quite fast, and the activities can start immediately. So, if you are interested in a branch in the USA, do not hesitate to talk to our agents with experience in company formation in the USA.
Statistics on the economy of the USA
Local and foreign entrepreneurs can opt to open branches in the USA and benefit from the opportunities available in the market. You can also analyze the following statistical data about the economy of this country before making a business decision:
- The US economy grew by approximately 2.8% in 2024.
- Consumer spending increased by approximately 4.2% in the same year in the USA.
- The gross domestic product of the USA grew at an annual rate of approximately 2.3% in October, November, and December of 2024.
- The thriving stock market and record-high home values in the USA also increased people’s disposition to spend, notably among the rich.
International investors can start a business in USA with simple formalities and with the help of our local agents. Among them are obtaining the EIN to identify the company as a taxpayer, and obtaining the business license and company seal. Moreover, opening an LLC company in Delaware is a process that can last around 2 months. The formalities involved can be successfully managed by our local representatives. If you would like to know more about how to open a branch in the USA, please contact our team of agents in company incorporation in the USA.