Legal analysis: the shares of a branch company actually belong to the head office. Shareholders of a branch can be shareholders of the head office, that is, shareholders of the head office and branches, or they can not be shareholders of the head office. They just invest in the branch office, obtain the status of shareholders of the branch office, and enjoy the relevant rights and interests of shareholders of the branch office according to law. However, if the shareholders of a branch are only the shareholders of the branch, they only need to bear corresponding legal responsibilities to the branch within the limit of their capital contribution. If the shareholders of the branch are also shareholders of the head office, they need to bear two responsibilities to the head office and the branch office within their respective capital contribution limits to the Federation of Industry and Commerce and the branch office.
A branch is a branch or subsidiary directly engaged in business activities of the head office. Although a branch has the word company, it is not a real company. Because the branch does not have the qualification of an enterprise legal person, does not have an independent legal status, and does not bear civil liability independently. A subsidiary shall bear civil liability independently.
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.