A branch company is a branch of the head office. It has no independence in law and economy, does not have the qualification of an enterprise legal person, and is only a subsidiary of the head office.
A branch company has no name, articles of association or property, and it shall bear legal liability for the debts of the branch company with the assets of the head office.
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.