What is specific to German companies
A subsidiary lets dividends reach Germany under the 95% participation exemption. A branch's profits are dealt with in the German company's own return, usually under the treaty's exemption method.
How the German side affects the choice
A German corporation holding at least 10% exempts 95% of the dividend under Section 8b of the Corporation Tax Act.
Our services
How SU and Company helps
We compare the options against the German parent's plans and give a written recommendation before any filing.
- Activity and FDI route check
- Tax comparison of subsidiary and branch
- Eligibility check for branch or liaison office approval
- Joint venture shareholding and FEMA pricing points
Questions
Is a branch office a good option for a German company?
Only for a narrow, approved activity. A branch is taxed at the foreign company rate and exposes the parent directly, so most groups prefer a subsidiary.
General information as at 5 November 2026, not advice for a particular case. Indian and German rules change often; confirm the current position before acting. German law points should be confirmed with a German adviser.