Responsibilities of branches and head offices

Branches cannot bear civil liability independently, and the consequences and responsibilities of all their actions shall be borne by subordinate companies. The head office refers to the headquarters of an enterprise with independent legal personality. The division of parent company, subsidiary company and branch company is mainly determined according to the relationship between companies, which directly affects the determination of the person responsible for the company's creditor's rights and debts. Branches do not have the qualifications of legal persons and do not bear civil liabilities independently. The head office is qualified as a legal person and can bear civil liability independently. The head office receives the Business License of Enterprise as a Legal Person, which bears the name of the legal representative. The branch company obtains a business license with the words "person in charge" on it. The branch does not have its own independent property, while the head office does. There should be no joint responsibility between the two. First of all, the joint liability should be between equal civil subjects, while the branch and the head office are not equal civil subjects, but have subordinate relations. Therefore, there is no basis for joint liability between them. Secondly, joint liability must be clearly stipulated by law or stipulated in the contract, otherwise there is no basis.

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.

What are the procedures for setting up a branch office?

The procedures for establishing branches are as follows:

1. Apply to the company registration authority for registration of establishment;

2. Submit the application for registration of establishment, the identity certificate of the legal representative, the business license of the head office and other materials;

3. After examination by the registration authority;

4. Register and issue a business license. To establish a company, it shall apply to the company registration authority for registration of establishment. If it meets the conditions for establishment, it shall be registered as a limited liability company or a joint stock limited company by the company registration authority; Those who do not meet the conditions for establishment shall not be registered as a limited liability company or a joint stock limited company. When a company establishes a branch, it 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.