Do You Need to Establish an EU Branch Office to Comply with the EU’s GPSR Regulation Related to EU Responsible Person and EU Representative?

The introduction of the General Product Safety Regulation (GPSR) in December 2024 has brought significant changes for businesses selling products within the European Union (EU). A key requirement is the appointment of an EU Responsible Person and an EU Representative to ensure compliance with the regulation. For non-EU companies, this raises the question: Is it necessary to establish an EU branch office to comply with these requirements?

The Role of an EU Responsible Person and EU Representative

The EU Responsible Person and EU Representative play crucial roles in ensuring that products meet the stringent safety, health, and environmental standards set by the EU. They are responsible for:

1. Ensuring Regulatory Compliance: Managing and maintaining technical documentation, obtaining necessary certifications, and ensuring proper labeling of products.
2. Liaison with Authorities: Acting as a point of contact for market surveillance authorities and handling compliance-related communications.
3. Consumer Safety: Rapidly responding to product-related issues, coordinating recalls, and implementing corrective actions when necessary.

Do You Need to Establish an EU Branch Office?

Establishing an EU branch office can provide several advantages, particularly for larger companies with significant sales in the EU:

1. Direct Presence and Control: Having a physical presence in the EU allows for more direct control over compliance activities, ensuring that all regulations are met efficiently.
2. Enhanced Communication: An EU branch office can facilitate better communication with EU regulatory authorities, providing a local point of contact for compliance-related inquiries.
3. Market Trust and Reliability: A local presence can enhance trust and reliability in the eyes of consumers and authorities, demonstrating a commitment to adhering to EU standards.
4. Streamlined Operations: An EU branch office can help streamline operations, making it easier to manage logistics, customer service, and market-specific strategies.

However, establishing an EU branch office involves costs and logistical considerations. For smaller companies or those with limited sales in the EU, appointing an independent EU Responsible Person and EU Representative may be a more cost-effective solution.

Worth Considering for Larger Companies

For larger companies with substantial sales in the EU, establishing an EU branch office can be a strategic move. It provides a solid foundation for compliance activities, enhances market presence, and demonstrates a long-term commitment to the European market. By having a local office, companies can more effectively navigate regulatory requirements, build stronger relationships with authorities, and provide better support to their customers.

How ASTA Certification Can Help

ASTA Certification specializes in providing EU company setup and management services. Our team of experts can assist you in establishing an EU branch office, ensuring that all regulatory requirements are met efficiently. We offer comprehensive support, from initial assessments to ongoing compliance management, making the process seamless and cost-effective. Contact us today to find out how we can support your business goals and help you achieve regulatory excellence.