Eigenfilialen

Eigenfilialen are branch offices operated by a parent company to conduct business in a specific region or market. They are typically part of the same corporate entity as the mother company and perform activities on its behalf, maintaining the parent’s branding and strategic direction while serving local customers.

The legal status of an eigenfiliaal varies by jurisdiction, but in many countries a filial is not a separate legal entity. The parent company bears responsibility for the filial’s obligations and liabilities. Local registration, adherence to regional regulations, and compliance with tax and labor laws are usually required. In some contexts a filiaal may be established as a locally registered operation under the parent’s control, while in others it may be treated differently for tax or regulatory purposes.

Eigenfilialen are commonly used to gain local market presence, provide proximity to customers, and streamline distribution and support. They can offer faster decision-making and consistent branding, with centralized control from the parent. However, they entail full liability for the parent’s obligations in many cases and may involve ongoing local compliance requirements and accounting consolidation across borders.

A key distinction is between eigenfilialen and dochterondernemingen (subsidiaries). A subsidiary is typically a separate legal entity with its own management and equity, while a filial remains part of the parent’s legal structure. Some companies may opt to establish a local subsidiary instead of a filial if a separate legal personality is required for risk, liability, or local regulatory reasons. The choice depends on legal, tax, and strategic considerations in the host country.