Legal analysis: According to China's company law, companies can set up branches. 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. Branches do not have independent legal personality. It is a branch of the head office and a representative of a company in a certain place. It can conduct business in this area on behalf of the head office, and can engage in the same business scope as the company, but the civil liability arising from its business activities shall be borne by the company. The subject of qualification is a legal person. Without a legal person, it is impossible to apply for qualification. Therefore, branches can only borrow the qualifications of the head office, but such borrowing must be certified by the head office, otherwise it will constitute illegal affiliation, and both the head office and branches will be punished. Whether the branch can apply for the qualification of the parent company. It depends on the regulations and requirements of the qualification issuing department. If there are no special requirements, the branch company can directly apply for the qualification of the parent company, because the branch company is equivalent to a department of the parent company, and its foreign contracts are undertaken by the parent company.
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.