A branch traditionally cannot carry out its own commercial activities but only market the mother company's business and close deals in the name and on behalf of the mother company. Besides it can carry out market studies and research as well as offer service and maintenance for the mother company's clients.

A trading branch, moreover, is technically allowed to trade within a limited spectrum, provided that it receives a respective trade license from the Economic Department. In practice such trade license is limited to certain service areas. Therefore for foreign trading or industrial companies the branch is no real option when it comes to trading activities. However, if the branch is used for marketing, research and know how transfer and the trading is facilitated under the name of a local commercial agent it might be an option.