I. Requirements for registered capital
To set up a branch, you need to have enough registered capital first. Registered capital is the economic basis for branches to carry out business, and it is also a necessary condition to ensure the normal operation of branches. According to the Company Law, the registered capital of a branch company is fully contributed by the parent company and paid in one lump sum when the company is established. The specific amount of registered capital may vary according to different industries and regions, so it is necessary to refer to relevant local policies and regulations.
Second, the scope of business restrictions
The business scope of a branch company shall be within the business scope of the parent company and shall not exceed the business ability and qualification of the parent company. When applying for the establishment of a branch, it is necessary to clarify the business scope of the branch and indicate it in the business license. If the branch needs to carry out business beyond the business scope of the parent company, it needs to obtain approval and permission from relevant departments.
Three. Qualification and reputation of the parent company
The establishment of a branch needs the backing of a parent company with legal business qualifications and good reputation. The parent company should have a stable business foundation and strong economic strength, and be able to provide necessary support and guarantee for the branches. At the same time, the reputation of the parent company is also one of the important factors for the smooth operation of the branch. If the parent company has a bad reputation, it may affect the business development of the branch and the trust of the partners.
Four. Compliance with laws and regulations
The establishment of branches also needs to meet the requirements of relevant laws and regulations. For example, it is necessary to register in the industry and commerce and obtain a business license in accordance with the provisions of the local administrative department for industry and commerce; Need to register and pay taxes in accordance with the provisions of the tax authorities; We must abide by labor laws and regulations and protect the legitimate rights and interests of employees.
To sum up:
The establishment of a branch company needs to meet the registered capital, business scope, qualification, reputation and other conditions of the parent company, as well as the requirements of relevant laws and regulations. Only with these conditions, the branch can carry out its business smoothly and achieve steady operation and development.
Legal basis:
Company Law of the People's Republic of China
Article 14 stipulates:
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.
Regulations of People's Republic of China (PRC) Municipality on the Administration of Enterprise Legal Person Registration
Article 36 provides that:
Where an enterprise as a legal person establishes a branch that cannot bear civil liability independently, it shall apply for registration, obtain a business license with the approval of the registration authority, and engage in business activities within the approved business scope.