The process of changing a branch company into a subsidiary company is as follows:
1. Cancel the branch first, go through the cancellation registration of the branch and make an announcement.
2. Establish a subsidiary, register the establishment of the subsidiary, and obtain the business license of the subsidiary.
According to Article 14 of the Company Law, 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.
Legal objectivity:
Company Law of the People's Republic of China
Article 14
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.
People's Republic of China (PRC) Civil Code
Article 74
A legal person may set up branches according to law. Where laws and administrative regulations stipulate that branches should be registered, such provisions shall prevail.
Branches engage in civil activities in their own names, and the resulting civil liabilities shall be borne by legal persons;
It can also be borne by the property managed by the branch company first. If it is insufficient, it shall be borne by the legal person.