Legal analysis
The head office manages its branches and has the right to exercise command, management and supervision over the production and operation, capital allocation and personnel management of its subsidiaries. It is qualified as a legal person and can independently bear civil liabilities. Branch is a legal concept corresponding to the head office, which refers to a branch that is managed by the head office in terms of business, funds and personnel and does not have legal person status. The main characteristics of the branch are: 1. The branch is established by the head office according to law, and the main business activities of the branch are completely decided by the head office. Branches generally carry out business activities under the entrustment of the head office in the name of the head office. 2. The branch does not have its own independent property, and all the assets of the branch belong to the head office. The branch and the head office are accounted for in a unified way economically, and the property actually occupied and used by them is part of the property of the head office and included in the balance sheet of the head office. 3. A branch is not a company, and its establishment does not need to follow the company establishment procedures, as long as it performs simple registration and industrial and commercial procedures. 4. Branches do not bear civil liabilities independently, and there is no corporate decision-making and business executive body in the form of board of directors. The head office shall bear unlimited liability for the debts of its branches. The branch company does not have its own independent name and articles of association, and can only use the same name and articles of association as the head office. Although the branch does not have the legal person status, its civil liability is borne by the company, but it can independently carry out civil activities commensurate with its civil capacity.
legal ground
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.