Legal basis: Civil Code of People's Republic of China (PRC).
Article 57 A legal person is an organization that has the capacity for civil rights and civil conduct, enjoys civil rights and undertakes civil obligations independently according to law.
Article 61 In accordance with the law or the articles of association of a legal person, the person in charge of civil activities on behalf of the legal person is the legal representative of the legal person.
The legal consequences of the legal representative's civil activities in the name of a legal person shall be borne by the legal person.
The restriction of the legal representative's representation by the articles of association or the functions and powers of the legal person shall not be against the bona fide counterpart.
Article 74 A legal person may establish branches according to law. Where laws and administrative regulations stipulate that branches should be registered, such provisions shall prevail.
Branches engage in civil activities in their own names, and the resulting civil liabilities shall be borne by legal persons; It can also be borne by the property managed by the branch company first. If it is insufficient, it shall be borne by the legal person.