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

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