| Branch Offices |

After the GmbH, the most common form of organization for foreign businesses in Germany is the branch of a foreign corporation. The basic difference between a subsidiary and a branch is that a branch is not a separate legal entity distinct from its "parent".

The sales agent's authority may be limited to the mere solicitation of business or may extend to act in the name of, and with the power to bind, a principal. Generally, the sales agent will only negotiate transactions to the point where they can be closed by the principal. As compensation for these services, the sales agent is entitled to a commission with respect to all sales concluded as a result of this activity during the term of the agency agreement. This agency agreement may be defined for a fixed or indefinite period.

Since the branch is not a separate legal entity, but is part of the parent company, it does not own its assets as an independent legal person but only as a share of the assets owned by the parent.

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