According to Article 14 of the Company Law of People's Republic of China (PRC), 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.
Extended data:
A company limited by shares has the following characteristics:
1, Limited by Share Ltd is an independent Economic legal;
2. The number of shareholders of a joint stock limited company shall not be less than the quorum. For example, according to French regulations, the number of shareholders should be at least 7;
3. The shareholders of a joint stock limited company shall bear limited liability for the debts of the company, and the liability limit shall be the number of shares payable by the shareholders;
4. All the capital of a joint stock limited company is divided into equal shares, and funds are raised through public offering. Anyone can become a shareholder of the company after paying the shares, and there is no qualification restriction;
5. The shares of the company can be freely transferred, but they cannot be withdrawn;
6. The company's accounts must be made public, so that investors can know about the company and make choices;
7. The establishment and dissolution of the company have strict legal procedures and complicated procedures. It can be seen that a joint stock limited company is a typical "joint venture company". Whether a person can become a shareholder of a company depends on whether he has paid the shares and bought the shares, not on his personal relationship with other shareholders. Therefore, a joint stock limited company can quickly, extensively and massively concentrate its funds.
At the same time, we can also see that although the capital of unlimited liability companies, limited liability companies and joint-stock companies is also divided into shares, these companies do not publicly issue shares, and their shares cannot be freely transferred. The stocks issued and circulated in the securities market are all issued by joint-stock companies. Therefore, a narrow joint-stock company refers to a joint-stock company.
Baidu Encyclopedia-China People and China Company Law
Baidu encyclopedia-stock company