What's the difference between a limited company and a branch company?

Limited company and branch company are two different enterprise forms, the difference between them:

The subject of legal person is different: limited company is an independent legal person and has the ability to bear civil liability independently; A branch is not an independent legal person, and its civil liability shall be borne by the head office.

Registration is different: limited companies need to be registered in the industrial and commercial department and have an independent business license; Branches only need to be filed in the industrial and commercial departments, and there is no independent business license.

Different business scope: the business scope of a limited company is stipulated in the company's articles of association and can be operated across regions; The business scope of a branch can only be within the scope authorized by the head office, but not beyond the business scope of the head office.

Tax treatment is different: limited companies need to pay enterprise income tax, while the profits of branches need to be summarized to the head office, which pays enterprise income tax.

Different investors: the investor of a limited company can be a natural person, legal person or other organization, while the investor of a branch company can only be the head office.

Therefore, according to different business needs and business characteristics, you can choose the appropriate enterprise form.