Will the creditor's rights and debts of the branch affect the head office?

Legal analysis

No, the head office, as a legal person, has the qualification of enterprise legal person, but the branch offices generally do not. When an enterprise as a legal person is unable to repay its debts, it may let the assets of branches without legal person status be paid off. The head office is responsible for compensation. With the branch company and the head office as the defendants, if the branch company cannot bear the debt, the head office shall bear the liability for compensation.

legal ground

People's Republic of China (PRC) Company Law Article 14 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.