A branch is an organisationally independent part of an undertaking which is territorially or otherwise separated from the principal undertaking, and at the location of which commercial activities are systematically carried out on behalf of the respective merchant.

A branch of a merchant of a Member State may be opened by a capital company of a Member State and other merchants of Member States.

A Member State is a Member State of the European Union, the Republic of Iceland, the Kingdom of Norway, and the Principality of Liechtenstein.

A branch of a merchant of a Member State is not required to submit a document certifying registration or the articles of association and the memorandum of association (decision on founding), if the Member State has joined the system of interconnection of registers of Europe (BRIS).