Legal analysis: the difference between molecular companies is that their branches do not have the qualification of enterprise legal person and cannot bear civil liability independently, and their civil liability is borne by the company that set up the branch. Subsidiaries have independent corporate qualifications and can independently bear civil liabilities according to law. The parent company is not responsible for the debts of its subsidiaries. There are also some differences between subsidiaries and branches in the establishment procedures and business scope. To set up a subsidiary, an application must be made in strict accordance with the requirements for setting up a company, and business can only be started after obtaining a business license and going through relevant formalities according to law; As a branch of the head office, the branch only needs to go through simple registration and opening procedures when it is established. 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.
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.
Regulations of the People's Republic of China on the Administration of Company Registration
Article 45 A branch refers to an organization established by a company outside its domicile to engage in business activities. This branch does not have the qualification of enterprise legal person.
Article 46 The registered items of a branch company include: name, business place, person in charge and business scope. The name of the branch company shall conform to the relevant provisions of the state. The business scope of the branch shall not exceed the business scope of the company.