What is the difference between a branch and a place of business?
Branch A branch forms part of the overseas company and is not a separate legal entity. It conducts business in the UK on behalf of the overseas company. This means that a person will be able to deal direct with the branch here instead of with the overseas company.Place of business A place of business is also part of the overseas company and not a separate legal entity. However, a place of business as opposed to a branch will be appropriate for those overseas companies where the UK activities are not sufficient to define it as a branch. The place of business will not have the authority to conduct the main business of the overseas company in the UK. Examples of a place of business include internal computer processing, warehousing or a sales/representative office. In principle UK tax is charged on any relevant profits and gains attributable to the branch. The impact of UK tax may be mitigated by any relevant double taxation treaty which may allow a foreign enterprise a limited presence in
