Article 14 of the Company Law stipulates that a company may 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. "A company may set up subsidiaries, which have legal personality and independently bear civil liability according to law.
The Company was established in China in accordance with the Company Law. It is a profit-making enterprise legal person, including limited liability companies and joint stock limited companies. It is a form of enterprise organization formed in the market economy to meet the needs of socialized mass production.
In the market economy, compared with other market players, the company has the following advantages:
Market economy requires equal market subjects to follow the principle of equivalent exchange; Through fair competition, we can obtain and provide goods from the market, promote the rational flow of the whole market, optimize the structure and rationally allocate resources. The requirements of market economy determine that market subjects must have clearly defined property rights and must be independent and equal. With its unique nature, the legal person system makes the legal person play a major role in the market economy. As a legal person, the company's characteristics fully meet the requirements of market economy, which will inevitably make the company the main body of market economy.
According to the Company Law of People's Republic of China (PRC), the main forms of companies are unlimited liability companies, limited liability companies, joint-stock companies and joint-stock companies, which are different from non-profit social organizations and institutions. Companies stipulated in China's current company law are divided into limited liability companies and joint stock limited companies.
Unlimited liability company: refers to a company in which all shareholders are jointly and severally liable for the debts of the company.
Limited liability company: refers to a company in which all shareholders of the company are liable for the debts of the company only to the extent of their capital contribution.
Joint venture: refers to a company in which some shareholders bear unlimited joint and several liability for the company's debts, while other shareholders bear limited liability for the company's debts only to the extent of their capital contribution.
Joint stock limited company: refers to a company whose capital is divided into equal shares, and all shareholders are liable for the debts of the company only to the extent of their respective shares.
Joint-stock company: refers to a company whose capital is divided into equal shares. Some shareholders are jointly and severally liable for the company's debts, and some shareholders are only liable for the company's debts to the extent of their shares.