When Should You Create a Branch vs. a New Organization?

English Template (1).pngWhen working in Wafeq, you might need to add new entities to register financial transactions such as invoices and expenses.
This raises an important question:
Should I add the entity as a "Branch" or a separate "Organization"?

 

What’s the Difference Between a Branch and an Organization?

TypeDefinition
OrganizationA fully independent legal entity with its own tax number. It is treated as a separate company within the system.
BranchAn operational unit under the same organization that shares the same tax number. It's used to organize transactions by location or business unit.

 

When to Use a New Organization?

Create a new organization in the following cases:

  • The entity is located in a different country and follows a different tax authority.

  • The entity has a different tax number.

  • The entity is part of a VAT Group in Saudi Arabia.

Any entity with its own tax number = separate organization in Wafeq.

 

When to Use a Branch?

Add a branch in the following cases:

  • The entity shares the same tax number as the parent company.

  • It has a different Commercial Registration (CR) number — that’s acceptable.

 

Was this article helpful?

1 out of 1 found this helpful

Have more questions? Submit a request

Comments

0 comments

Please sign in to leave a comment.