The most important difference between a subsidiary and a branch is that a subsidiary has legal personality and can bear civil liability independently.
2. Differences in tax angle.
There is a big difference between setting up a branch and setting up a subsidiary through holding. Because the branch is not an independent legal person, its profits and losses should be combined with the head office to calculate and pay taxes, while the subsidiary is an independent legal person, and the parent and subsidiary companies should pay taxes separately. The subsidiary can only receive the shares held by shareholders for dividends from the after-tax profits.
3. The property relationship is different.
In the structure of property relationship, although the subsidiary has the participation of the parent company, it still owns its own property. The property of the branch company belongs to the company and is an inseparable part of the company's property.
Legal basis: Article 39 of the Regulations of People's Republic of China (PRC) Municipality on Registration Management: A branch refers to an organization established by a company outside its domicile to engage in business activities. This branch does not have legal person qualification. "According to this regulation, the branch has the following characteristics: it is a branch of the company; Have business qualifications but can't be qualified.