Can a branch company have equity?

Legal analysis: No, the branch does not have the legal person qualification and is not a qualified subject of civil rights. A branch is not an enterprise legal person, nor can it become a partner. It has no legal person property right and is not a qualified subject holding equity. Where a company establishes a branch, it shall apply for registration with the company registration authority where the branch is located within 30 days from the date of making the decision.

Legal basis: Article 45 of the Regulations on the Administration of Company Registration 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 14 of the Company Law of People's Republic of China (PRC) * * 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 liabilities according to law.