1. The legal status of the branch is completely different from that of the subsidiary. It has no independent legal status.
The relationship between the branch and the head office is somewhat similar to that between the subsidiary and the parent company.
A branch is a branch or subsidiary directly engaged in business activities of the head office.
Although a branch has the word company, it is not a real company. Because the branch does not have the qualification of an enterprise legal person, does not have an independent legal status, and does not bear civil liability independently.
2. Subsidiary subsidiary is a legal concept corresponding to the parent company.
A subsidiary has the status of a legal person and can bear civil liability independently, which is an important difference between a subsidiary and a branch.
The parent company and subsidiaries are independent legal persons, and the subsidiaries are actually controlled by the parent company. According to the majority voting principle of the shareholders' meeting, the more shares you own, the more you can get the decision-making power on the company's affairs.
The control of a parent company over a subsidiary company is usually based on an ownership or control agreement. The parent company has the actual decision-making power over all major matters of the subsidiary, especially the composition of the board of directors of the subsidiary. In addition to share control, the relationship between parent company and subsidiary company can also be formed by concluding some special contracts or agreements to make one company under the control of another company.