What's the difference between a subsidiary and a branch?
1 Different enterprise qualifications: subsidiaries have the qualifications of enterprise legal persons and are completely independent in law; The branch company does not have the qualification of enterprise legal person, and its civil liability shall be borne by the head office.
2 Different tax payment methods: the subsidiary is an independent accounting entity and a completely independent taxpayer, and pays VAT and income tax in the tax authorities where the enterprise is registered; The branch is a separate VAT taxpayer, which is the same as the head office and other branches in terms of income tax.
3 Different risk-taking: the subsidiary company bears limited liability, and the branch company bears unlimited liability.