Are branches allowed to be acquired?

The acquisition of branches is not allowed. Because the branch does not have legal person qualification and is not a qualified subject of civil rights, it cannot be obtained as a subject alone. Even if the assets of the branch are transferred to others, the debts of the branch are still borne by the original head office in principle.

legal ground

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 liabilities according to law.