The difference between branches and subsidiaries: the difference between subject qualification and property liability; Both direct control and indirect control are different; Differences in property relations; Others. A branch refers to a branch under the jurisdiction of the company in terms of business, funds and personnel. Not qualified as a legal person. In international business, a subsidiary refers to a legal person enterprise of the host country established in accordance with the law with all or part of the shares invested by the parent company.
legal ground
Article 14 of the Company Law of People's Republic of China (PRC)
Companies can 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.