How does a branch become a subsidiary?

A branch cannot directly become a subsidiary. It can carry out assets verification and asset evaluation, and then cancel the branch in the relevant industrial and commercial departments, and then establish a subsidiary.

The subsidiary has independent legal personality; The branch has no independent legal personality, but is a subsidiary of the head office.

legal ground

Article 14 of the Company Law stipulates that 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.