Legal analysis: branches can sign contracts in their own names. The purpose of setting up a branch company is to conduct business comprehensively and conveniently. Branches can conduct business in their own names, including signing contracts, which is an important and indispensable link. When a branch company signs a contract, it only needs to affix the seal of the branch company. There is no need to stamp the seal of the head office on every contract. For companies or individuals that have business dealings with subsidiaries, there is no need to require subsidiaries to affix the seal of the head office to the contract. As long as you consult the power of attorney of the head office to the branch office and its registered business license, you can know what the business scope of the branch office is granted by the head office, and the contract signed by the branch office within the scope authorized by the head office is valid.
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.