What is the difference between the liquidation of a branch company and a subsidiary company?

Legal analysis: subsidiary is a legal concept corresponding to parent company. A subsidiary has the status of a legal person and can bear civil liability independently, which is an important difference between a subsidiary and a branch. As an independent legal person, a subsidiary is liable for its debts with all its assets. As the branch does not have its own independent property, it is financially unified with the head office. Therefore, the head office is responsible for paying off its operating debts, that is, the head office is responsible for the debts in the operating activities of the branch company to the extent of all its property.

Legal basis: Regulations of People's Republic of China (PRC) Municipality on Registration Administration.

Article 38 Where the registered items of a company existing due to merger or division change, it shall apply for registration of change; A company dissolved due to merger or division shall apply for cancellation of registration; A company newly established due to merger or division shall apply for registration of establishment. Where a company is merged or divided, it shall apply for registration 45 days after the date of announcement, and submit the merger agreement, the resolution or decision of merger or division, the relevant certificate of the company's announcement of merger or division in the newspaper, and the explanation of debt settlement or debt guarantee. Where laws, administrative regulations or the State Council decisions stipulate that the merger or division of a company must be approved, relevant approval documents shall also be submitted.

Article 39 Where the change of registered items involves the items recorded in the Business License of Enterprise as a Legal Person, the company registration authority shall issue a new business license.