Legal analysis: Branch refers to the branch under the jurisdiction of the company, and refers to the organization established by the company outside its residence to engage in activities in its own name. The branch company does not have the qualification of enterprise legal person, and its civil liability shall be borne by the head office. Although there is the word company, it is not a real company and has no articles of association. The company name can only add the word "branch" after the name of the head office.
Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. 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.