Branches refer to the branches under the jurisdiction of the company, as well as organizations 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. A subsidiary refers to a company whose shares are controlled by another company or actually controlled and dominated by another company according to an agreement. A subsidiary owns all its own property, has its own company name, articles of association and board of directors, conducts business activities and various civil activities in its own name, and independently bears all the consequences and responsibilities brought about by the company's actions.
Article 14 of the Company Law 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.