A subsidiary refers to a company whose shares are owned by another company or actually controlled by another company through an agreement.
1, with different legal status:
Branches have no legal personality, no independent legal status, and do not have to bear civil liability independently.
A subsidiary company has the status of a legal person and can bear civil liability independently.
2, the way to bear the debt responsibility is different:
A subsidiary is liable for the debts of its operating branch with all its assets.
As an independent legal person, subsidiaries are responsible for their business responsibilities with all their property.
3. The responsibility subject is different:
1, the subsidiary is indirectly controlled by the parent company, that is, the production and operation decisions of the subsidiary are influenced by the appointment and removal of members of the board of directors of the subsidiary and investment decisions.
2. The branch is directly controlled by its personnel, business and property, and engages in business activities within the business scope of affiliated companies.