Although the branch does not have legal person qualification, it has independent litigation subject qualification. Its civil liability shall be borne by the head office. In order to facilitate their litigation, China has also given them the ability of litigation rights to a certain extent. Branches established by legal persons according to law and obtained business licenses may participate in litigation as other organizations. Although branches can participate in litigation, the legal consequences should still be borne by the head office. A branch refers to a branch under the jurisdiction of the head office in terms of business, funds and personnel. Not qualified as a legal person. A branch company is a branch of the head office. It has no independence in law and economy, does not have the qualification of an enterprise legal person, and is only a subsidiary of the head office. A branch company has no name, articles of association or property, and it shall bear legal liability for the debts of the branch company with the assets of the head office.
Legal basis:
Article 14 of the Company Law of People's Republic of China (PRC) * * A company 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.
Article 51 of the Civil Procedure Law of People's Republic of China (PRC) * * * Citizens, legal persons and other organizations may be parties to civil litigation.
A legal person shall file a lawsuit by its legal representative. Other organizations are sued by their principal responsible persons.
Derivative problem:
Procedures for revoking branches
When a company cancels a branch, one is that the head office cancels, and the branch office also cancels as needed, and the other is that the head office decides to cancel the branch office, both of which require formal cancellation procedures.
1. With a copy of the branch's business license, go to the industrial and commercial registration window to cancel the registration in accordance with the regulations, receive the application for cancellation of registration of the branch and fill in the certificate of the entrusted agent or designated representative in accordance with the regulations.
Second, prepare the materials for cancellation of registration. Because the branch company does not have the qualification of legal person, the cancellation of registration materials needs to be decided by the affiliated company and signed to prepare the relevant materials. Submit the original and photocopy of the materials, which shall be marked as "consistent with the original" and stamped with the official seal of the company.
Three, after the materials are ready, submit a full set of materials to the industrial and commercial registration authority, and cancel the registration within 2 working days on the premise that the submitted materials are legal, complete and effective. There is no charge for cancellation of registration.
Iv. After the cancellation of branch registration is approved by the industrial and commercial registration authority, the branch needs to go to the company registration authority for cancellation of branch registration with the Notice of Approval for Cancellation of Branch Registration.