Odoo Multi-Company and Branches: The Complete 2026 Guide

Running more than one location, division or legal entity on Odoo? You have two tools for it — multi-company and branches — and picking the wrong one causes months of accounting headaches. This guide explains the difference in plain English, shows you how to set up each in Odoo (17, 18 and 19), covers inter-company transactions, and helps you choose the right structure the first time.

Branch vs company in Odoo: the key difference

This is the decision everything else hangs on. A separate company is a distinct legal entity — it files its own taxes, can use its own currency and chart of accounts, and can even sit in another country. A branch is a subsidiary of a main company that shares the same legal entity, country, chart of accounts, currency and taxes — but can still have its own address, bank accounts, pricelists and inventory locations.

When to use a branch vs a separate company

• Use a branch when your extra units are part of the same legal entity — multiple retail stores, regional offices, operational divisions, or franchise locations that report under one registration and file one tax return.
• Use a separate company when each unit is its own legal entity — different subsidiaries, distinct ownership, separate tax filings, or operations in another country/currency.

Rule of thumb: different tax return = separate company; same tax return, different location = branch. If you're unsure, our Odoo implementation team maps your legal and operational structure before anyone touches the configuration — it's far cheaper than re-structuring later.

A quick note on Odoo versions (17, 18, 19)

Branches were introduced in Odoo 17, where they behaved almost like companies but shared the parent's chart of accounts. From Odoo 18 onward (and in the current Odoo 19), the platform draws a clearer line between main companies and their branches, so the setup below reflects the current behaviour. If you're on an older version and planning to use branches, it's worth an upgrade to Odoo 19 first.

How to set up multiple companies in Odoo (step by step)

1. Go to Settings → Users & Companies → Companies and click New.
2. Enter the company name, address, currency and other legal details. Each company can have its own currency and chart of accounts.
3. Save, then repeat for every legal entity you operate.
4. Under Settings → Users & Companies → Users, set each user's Allowed Companies and their default company.
5. Users switch between companies with the company switcher in the top-right menu; they can also work across several companies at once by ticking more than one.

How to create a branch in Odoo

1. Go to Settings → Users & Companies → Companies and open (or create) the record for the branch.
2. In the branch's form, set the Parent Company field to the main company. Odoo automatically lists it under the parent's Branches.
3. The branch inherits the parent's chart of accounts, currency and taxes — but you can give it its own address, bank accounts, pricelists, loyalty programs and inventory locations.
4. The parent company sees all branch data; each branch sees only its own.

Records like products and contacts are shared by default across the parent and its branches; if you need to limit one to a single entity, set its Company field.

Inter-company transactions in Odoo

When separate companies trade with each other, Odoo can mirror the paperwork automatically so you don't double-key it:

• Enable it under Settings → Companies → Inter-Company Transactions for the relevant company.
• Choose your automation: create a vendor bill when an invoice is confirmed, a sales order when a purchase order is confirmed, or a purchase order when a sales order is confirmed.
• Fine-tune the mirrored documents under Accounting → Configuration → Inter-Company Rules.
• You can also move stock between companies with inter-company transfer orders that update the receiving company's inventory automatically.

Access rights, sharing and reporting

Multi-company access is controlled per user via Allowed Companies. Master data (products, customers, vendors) can be shared for efficiency or scoped to one entity for separation. For group reporting, Odoo lets you consolidate across companies — useful when leadership wants one P&L across every entity while each still files on its own.

Common pitfalls (and how to avoid them)

• Choosing a company when you needed a branch (or vice-versa). Branches can't have a different chart of accounts or country; companies file separately. Get the legal structure right before configuring.
• Over-splitting. More companies means more charts of accounts, more reconciliation and more admin. Only separate what the law or ownership actually requires.
• Currency & consolidation surprises. Cross-currency companies need FX and consolidation planned up front.
• Access-rights sprawl. Map who should see which entity before go-live, not after.

Which structure is right for your business?

If your extra units share one legal registration, branches keep your books simple and your reporting unified. If they're distinct legal entities, multi-company with inter-company automation is the way. Most growing groups end up with a mix. OdooVizion is an Odoo Certified Partner — we design the company/branch structure around your real legal and tax picture, set up inter-company automation, and configure access so every team sees exactly what it should. See our Odoo pricing or customization options, and if you operate in the Gulf, our Dubai team handles multi-entity UAE groups.

FAQs

What is the difference between a branch and a company in Odoo?
A branch shares the same legal entity, country, chart of accounts, currency and taxes as its parent company (but can have its own address, bank and pricelists). A separate company is its own legal entity that files its own taxes and can use a different chart of accounts and currency.

When should I use a branch instead of a separate company in Odoo?
Use a branch when the unit is part of the same legal entity — locations, divisions or franchises that file under one registration. Use a separate company when the unit is a distinct legal entity with its own tax filing or ownership.

How do I create a branch in Odoo?
Go to Settings → Users & Companies → Companies, open or create the branch record, and set its Parent Company field to the main company. Odoo lists it under the parent's Branches and inherits the parent's chart of accounts.

How do inter-company transactions work in Odoo?
Enable Inter-Company Transactions under Settings → Companies, then choose to auto-create mirrored documents — a vendor bill from a confirmed invoice, or a sales/purchase order from the counterpart order. Rules are configured under Accounting → Configuration → Inter-Company Rules.

Do branches share the chart of accounts in Odoo?
Yes. Branches inherit the parent company's chart of accounts, currency and taxes. If you need a separate chart of accounts, you need a separate company, not a branch.