According to the Company Law of People's Republic of China (PRC), a company can set up subsidiaries, which have legal personality and independently bear civil liabilities according to law. So the subsidiary is independent, not a branch of the head office.
What is the concept of branching?
Compared with our company, the branches are divided according to the internal jurisdiction of the company. Refers to the relatively independent branches established by the company in accordance with the law due to business needs in the course of operation. It is a branch under the jurisdiction of our company in terms of business, funds and personnel, but it does not have legal person status.
Compared with the parent company, subsidiaries are classified according to the control or subordinate relationship between companies. It means that a company owns more than a certain percentage of the shares of another company or is actually controlled by another company through an agreement. It is an independent legal person who can independently enjoy rights and undertake obligations.
Branches are non-legal organizations, such as branches, branches, business departments, business departments, offices, etc. , is an enterprise legal person outside the headquarters to realize its functions, can carry out civil activities in its own name, but cannot bear civil liability independently.
To sum up, it is Bian Xiao's relevant answer about whether the subsidiary belongs to the branch, and I hope it will help you.
legal ground
Article 13 of the Company Law
The legal representative of the company shall be the chairman, executive director or manager in accordance with the articles of association, and shall be registered according to law. Where the legal representative of the company changes, it shall go through the registration of change.
Article 14
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.