Branch vs Subsidiary in Canada: Which Structure Actually Fits
The choice between a branch and a subsidiary determines where risk sits.
A branch exposes the foreign parent directly. A subsidiary contains liability within a Canadian entity.
Tax treatment differs. A branch may be taxed directly on Canadian operations. A subsidiary is taxed as a separate entity.
Operational flexibility also changes. A subsidiary can contract, hire, and operate locally with greater separation.
The choice is not about preference. It is about how risk, tax, and control are allocated.