Legal analysis: the establishment mode, legal status and controlled mode of branches and subsidiaries are different. Specifically: 1, with different ways of establishment, subsidiaries are generally established by two or more shareholders, including the company, in accordance with the provisions of the Company Law of People's Republic of China (PRC). Generally, the head office applies to the local industrial and commercial authorities to set up a branch outside its residence. 2. With different legal status, subsidiaries have legal personality; Branches do not have legal person status and have no independent name and organization. 3. Due to different control methods, the parent company generally adopts indirect control methods for its subsidiaries; Branches can only engage in business activities within the business scope of the head office.
Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. 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.