1, the difference between a branch and a subsidiary:
(1) has different legal status. Branches do not have the qualification of enterprise legal person, have no independent legal status, and do not have to bear civil liability independently; The subsidiary has the qualification of legal person and can bear civil liability independently;
(2) There are different ways to take responsibility for debts. A subsidiary shall be liable for the debts of its operating branch with all its assets; As an independent legal person, the subsidiary is responsible for its business responsibility with all its property;
(3) The subject of responsibility is different. The subsidiary is indirectly controlled by the parent company, that is, by appointing and removing members of the board of directors of the subsidiary and making investment decisions, the production and operation decisions of the subsidiary are influenced; Branches are directly controlled by their personnel, business and property, and engage in business activities within the business scope of affiliated companies.
2. Legal basis: Article 14 of People's Republic of China (PRC) Company Law.
Branches and subsidiaries 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.
2. Is the branch an independent legal person?
The branch is not an independent legal person. Defined as follows:
1. Branch refers to the branch under the jurisdiction of the Company in terms of business, funds and personnel. And does not have legal personality;
2. The branch is a branch, which has no independence in law and economy, and is only a subsidiary of the head office;
3. The branch company does not have its own name, articles of association or property, and shall be legally liable for the debts of the branch company with the assets of the head office.