A company may set up branches, handle industrial and commercial registration according to law, and obtain a business license. Branches do not have legal person status, and their civil liabilities shall be borne by the company, all of which shall be funded by the head office.
As a branch of the company, the branch has no ownership structure, so it is difficult for the branch of the head office to have the right to distribute shares.
Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. 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.