What is a branch:
A branch is a branch or subsidiary directly engaged in the business scope of the head office. It has no name, no articles of association and no property. Although a branch has the word company, it is not a real company. Branches do not have the qualification of enterprise legal person, independent legal status and independent civil liability.
What is a subsidiary:
A subsidiary refers to a company whose shares are owned by another company or actually controlled by another company through an agreement. A subsidiary company has the status of a legal person and can bear civil liability independently. Have its own name and articles of association, and carry out business activities in its own name. Its property and the company's property are independent of each other and each is responsible for its own debts.
The difference between a branch and a subsidiary:
1. The branch company does not have legal person status and does not independently bear civil liability, and its civil liability shall be borne by the company that established the branch company; The subsidiary has legal person status and can independently bear civil liability according to law, and the parent company is not liable for the debts of the subsidiary;
2. The business scope of the branch shall not exceed the business scope of the head office; There are no restrictions on subsidiaries;
3, the branch is set in front of the branch name, followed by a place name plus company; A subsidiary may name itself without the name of the parent company;
4. The personnel, business and property of the branch company are directly controlled by the affiliated company and engaged in business activities within the business scope of the affiliated company; The parent company's control of subsidiaries must meet certain legal conditions, and the parent company's control of subsidiaries generally does not take direct control, but more indirect control;
5. Because the branch does not have its own independent property, it is accounted for together with the affiliated company economically, so the liabilities in its business activities are paid off by the affiliated company, that is, the affiliated company is liable for the debts in the operation of the branch company to the extent of all its assets; As far as the subsidiary is concerned, the parent company, as the largest shareholder of the subsidiary, is only responsible for the debts of the subsidiary's business activities to the extent of its capital contribution to the subsidiary;
6. The branch shall report the overall situation to the head office; The subsidiary's report to the parent company is limited to production and business activities;