I. Characteristics of the branch: 1, which is a branch of the company; 2. Have business qualifications; 3. Not qualified as a legal person. II. Characteristics of subsidiaries: 1. A certain number of shares of subsidiaries are held and controlled by a company. 2. This subsidiary has independent legal personality. Third, a clear understanding of the similarities and differences between branches and subsidiaries is conducive to identifying which choice is more suitable for the development of their own enterprises. Similarities: all have business qualifications and have their own office space; Difference: (1) A branch company does not have the qualification of an enterprise legal person, so it cannot bear civil liability independently, and its civil liability shall be borne by the company that established the branch company. Subsidiaries have independent corporate qualifications and can independently bear civil liabilities according to law. The parent company is not responsible for the debts of its subsidiaries. (2) The names of enterprises are different. The branch puts the name of the branch in front, followed by the company with a certain place name; A subsidiary can name itself without adding the name of the parent company. (3) The content of the enterprise's industrial and commercial registration in the Administration for Industry and Commerce is different, which is embodied in the capital contribution. Article 14 Branches and subsidiaries 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.