Is the relationship between branch and head office, parent company and subsidiary the same?

The division of parent company, subsidiary company and branch company is mainly determined according to the relationship between companies, which directly affects the determination of the person responsible for the company's creditor's rights and debts. In China's current company law, there is no concept of parent company, but there are principles for branches and subsidiaries. Article 14 of the Company Law of People's Republic of China (PRC) 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 can set up subsidiaries, which have legal personality and independently bear civil liability according to law. "

Main features:

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 unified in economic accounting, 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, so it can be established without following the company's 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.

5. The branch 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.

Tips: The above contents are for reference only.

Reply time: 202 1-08-09. Please refer to the latest business changes announced by Ping An Bank in official website.

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