2. subsidiaries and branches are subsidiaries of the head office, but there are great differences in essence.
(1) The subsidiary is an independent enterprise legal person with its own property, company name, articles of association and board of directors; A branch is not an independent enterprise legal person, and its name and property are attached to the head office.
(2) If the subsidiary is a joint stock limited company controlled by a large group company, the subsidiary may publicly issue shares, but the branch may not.
(3) In terms of legal status, subsidiaries are the same as limited liability companies and joint stock limited companies, but their branches are different.
Extended data:
1, branch
A subsidiary of the head office. It is also a form of company existence. Branch is a concept corresponding to the head office. The business of many large companies is distributed in the whole country or even in many countries, and the branches or subsidiaries established by the company are directly engaged in these businesses. These branches or subsidiaries are called branches.
2. subsidiaries
A subsidiary is a legal concept corresponding to a parent company, which refers to a company that owns more than a certain proportion of shares in another company or can actually control another company through an agreement.
Subsidiary is also a form of company existence. Although controlled by the parent company, it belongs to an independent enterprise legal person. Have their own name and property, independently enjoy civil rights and assume civil obligations.
Generally speaking, both limited liability companies and joint stock limited companies can set up their own subsidiaries.
3. Its subsidiaries
A branch or subsidiary of a company is called a subsidiary of the company.
References:
Baidu encyclopedia-branch