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.
Second, the characteristics of branches
1. The branch is established by the head office according to law, and the main business activities of the branch are completely decided by the head office. Under normal circumstances, branches carry out business activities in the name of the head office and according to the entrustment of the head office.
2. The branch does not have its own independent property, and all the assets of the branch belong to the head office. The branch and the head office are unified in economic accounting, and the property actually occupied and used by them is part of the property of the head office and included in the balance sheet of the head office.
3. A branch is not a company, and its establishment does not need to follow the company establishment procedures, as long as it performs simple registration and industrial and commercial procedures.
4. Branches do not bear civil liabilities independently, and there is no corporate decision-making and business executive body in the form of board of directors. The head office shall bear unlimited liability for the debts of its branches.
The branch company does not have its own independent name and articles of association, and can only use the same name and articles of association as the head office.
Third, the relationship between the branch and the head office.
(1) The branch does not have its own independent property, and the property actually occupied and used is part of the property of the head office and listed in the balance sheet of the head office.
(2) The branch does not have the legal person qualification and does not bear civil liability independently.
(3) The establishment procedure of a branch is different from that of a company in the general sense, and the establishment of a branch only requires simple registration and business opening procedures.
(4) The branch does not have its own articles of association, and there is no corporate management decision-making body such as the board of directors.
(5) The name of the branch company is the name of the head office plus the words of the company. Although the name has the word company, it is not a real company.