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A branch is a branch under the jurisdiction of a company, which is an institution established by the company outside its domicile to engage in activities in its own name. The branch does not have the status of an enterprise legal person, and its civil liability is borne by the head office. Although there is a company but not a company in the real sense, there is no own articles of association, and the company name only needs to add the word branch after the name of the head office.
A branch office is a branch that is under the jurisdiction of the Company in terms of business, capital, personnel, etc., and does not have legal personality. A branch is a branch and has no legal or economic independence, and is only a subsidiary of the head office. The branch does not have its own name, articles of association, and its own property, and is legally responsible for the debts of the branch with the assets of the head office.
As a limited liability company or a stock company as a legal person, according to the needs of production and business activities, according to the classification and geographical scope of the business within the company, the management mode of setting up branches is adopted and a reasonable division of labor is carried out. According to the provisions of the Company Law, a limited liability company or a branch established by a joint stock company does not have the status of a corporate legal person, and its civil liability is borne by the head office. Legal basis:
Article 14 of the Company Law of the People's Republic of China provides that a company may establish a branch. To establish a branch, it is necessary to apply for registration with the company registration authority and obtain a business license. A branch office does not have legal personality, and its civil liability is borne by the company.
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The branch cannot be operated in partnership with others, because the branch does not have the legal personality, and the head office shares a legal person, can not bear the problem, encounter problems, or only the head office to replace the branch to bear the corresponding responsibility, all matters also belong to the head office, and do not need others to participate.
The branch was originally set up by the head office to facilitate management, if you want to add other people to come in, it will complicate the operation and management of the company, and there are many people who make decisions about a thing, which is usually very troublesome, seriously affecting the progress, not only inconvenient, but also may be more troublesome, which is also inconsistent with the original intention of setting up a branch.
1. Subsidiaries can be divided into two types: independent subsidiaries and wholly-owned subsidiaries.
Although a branch cannot be operated in partnership with others, a subsidiary can be operated in partnership with others, and if it is really necessary to operate in partnership with others, it is not necessary to set up a branch, but to set up a subsidiary, especially a wholly-owned subsidiary, which is subject to the very limited management of the head office.
Second, the branch does not have a legal representative, only the person in charge.
The branch is only equivalent to an office branch of the head office, everything has no decision, all things need to be reported to the head office, there is no legal representative, generally only the person in charge will be set up, financial expenditure and other issues are to be completed through the head office, generally set up in a different place, convenient for local business.
3. If the branch wants to become independent, it must first be cancelled, and then a new subsidiary can be registered.
The branch is not independent, it is attached to the head office, and the head office shares a legal person, there is no right to bear civil liability, if you want to operate independently, you can only cancel the branch, register a new subsidiary, and re-establish a legal representative, so that you can operate independently.
Summary: Branch and subsidiary are two completely different concepts, the branch must rely on the head office to operate, and the subsidiary can operate independently, so when setting up, we must think clearly about what the purpose of the setting is, so as to deal with things more conveniently.
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It is your own company, then you can make your own decisions, your branch, if there are reliable people, I think it can also be a partnership, but I mind for their own interests, but also for the future business prosperity, you still have to go carefully, carefully investigate your Hehuo person, to see if he has management experience in this area, whether there is economic strength, in life, work, how about character, after all, it is a partnership, if in the future in business, work, you have different opinions, different hearts, The plan of doing business is different, and so on, will bring some trouble to your company, and will also affect the business, mainly to affect the daily life, and mood, the cost of opening a company is not a small amount after all, I think it is possible to operate in partnership with others, but you must choose the right person, or then the trouble is endless.
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Generally speaking, a company does not have the status of an independent legal person and cannot operate in partnership with others. But if you are actually partnering, on the one hand, you need the partner to believe in you, and on the other hand, you need to specify the cooperation agreement.
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A branch office cannot operate as a partnership. First, the partnership does not have the form of a branch office. Second, the branch does not have legal personality and does not have shareholders, and the head office bears the debts of the branch.
In other words, a branch does not have the property rights of a legal person and is not a suitable entity to hold equity.
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Because the partnership does not have the form of a branch. The branch can be in the form of an independent subsidiary or a wholly-owned subsidiary, which does not need to inject new capital and is fully included in the parent company, and does not have the ability to be financially independent.
The branch office is established by the head office, and all major decisions are decided by the head office. According to the relevant laws and regulations, the branch does not have a legal representative, only the person in charge. A branch office does not have an independent legal personality and cannot independently bear civil liability.
In the concept of a partnership, there is no such thing as a joint branch. The branch belongs to its head office in form, and it can be an independent subsidiary or a wholly-owned subsidiary, and the wholly-owned subsidiary does not need to re-invest a new amount of funds, and all its management and property are fully included in the parent company, and the civil liability is also borne by the parent company. At the same time, the establishment of a branch also needs to go to the registration authority to record and register, and it must have its own business license.
To sum up the above, although the branch has an independent legal status, all rights and interests must also be authorized by the head office, so the branch company cannot be a partnership.
Legal basis: Partnership Law
Article 14. The following conditions shall be met for the establishment of a partnership enterprise:
1) There are more than two partners. If the partner is a natural person, he or she shall have full capacity for civil conduct;
2) Have a written partnership agreement;
3) Capital contributions subscribed or actually paid by partners;
4) Have the name of the partnership and the place of production and operation;
5) Other conditions provided for by laws and administrative regulations.
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Is there a difference between a branch office and a subsidiary.