The management fee charged by the head office to the branch company shall be determined by the meeting of the company's sensible Committee or the articles of association. Whether the head office collects management fees is only the calculation method of profit distribution within your company, because the income tax should be calculated in summary, which will not affect the income tax of the whole company.
Branch companies can conduct independent financial accounting, which is characterized by:
1, which has an independent organizational form in management;
2. Have certain funds and open an account in a local bank;
3. Conduct business activities independently; Can conclude economic contracts with other units;
4. Calculate profit and loss independently; Set up a separate accounting institution with accounting personnel;
5. Have a complete accounting work organization system to facilitate the independent operation of the branch. A branch refers to a branch under the jurisdiction of the head office in terms of business, funds and personnel. Not qualified as a legal person.
legal ground
Company Law of the People's Republic of China
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.