The management fee between the head office and the branch office is recorded: both are independent legal persons, and the branch office does accounting: borrowing: profit distribution-handing over the management fee to the superior company; Loans: bank deposits/internal transactions. The parent company is the opposite. The branch is a wholly-owned branch of the parent company: the branch keeps accounts: borrowing: management fees-paying the management fees of the parent company: bank deposits/internal transactions. Parent company accounting: debit: bank deposit debit: management fee-management fee paid by subordinate companies.
legal ground
Article 14 of the Company Law of People's Republic of China (PRC)
Companies can 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.