Can a company set up subsidiaries and branches?

Legal analysis: Yes. However, due to the different nature of subsidiaries and branches, the establishment procedures are also different. The subsidiary is an independent legal person and is established as an independent company. A branch is only a branch of the company and does not have the qualification of a legal person. They just need to apply for registration and get a business license.

Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company. A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.