What's the difference between a wholly-owned subsidiary and a branch?

There are the following differences between a wholly-owned subsidiary and a branch: a wholly-owned subsidiary has the status of a legal person and independently bears civil liability according to law; The branch company does not have legal person status, and its civil liability shall be borne by the head office; The wholly-owned subsidiary is funded by the investor, and the branch is funded by the head office.

legal ground

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. The provisions of this section shall apply to the establishment and organization of Article 57 of the Company Law of People's Republic of China (PRC). Where there are no provisions in this section, the provisions in the first and second sections of this chapter shall apply. A one-person limited liability company as mentioned in this Law refers to a limited liability company with only one natural person shareholder or one corporate shareholders.