What is the difference and connection of a large group, branch, subsidiary

Is there a difference between a branch office and a subsidiary.

The differences are as follows: 1) The subsidiary is an independent legal person with its own independent name, articles of association and organizational structure, and carries out activities in its own name externally, and the claims and debts incurred by Naisheng in the course of operation are borne by itself. The branch does not have the legal personality of the enterprise and does not have an independent name, and its name should be named with the name of the affiliated company, which is established by the affiliated company in accordance with the law, and is only a branch of the company.

2) the parent company's control over the subsidiary is generally not direct control, but more indirect control; However, a branch office is directly controlled by its subordinate company in that its personnel, business, and property are directly controlled by the subordinate company, and business activities are carried out within the business scope of the subordinate company.

3) As an independent legal person, the subsidiary shall be liable for its operating liabilities to the extent of all the assets of the subsidiary. Since the branch does not have its own independent property, it is economically unified with the subordinate company, so the liabilities in its business activities are paid off by the subordinate company.

Article 14 of the Company Law of the People's Republic of China.

A company can set up a branch office. 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.

A company may establish a subsidiary, which has the status of a legal person and independently bears civil liability in accordance with the law.

Article 39 of the Registration Regulations of the People's Republic of China refers to the establishment of a company outside its domicile to engage in business activities. A branch office does not have legal personality. Article 14 of the Company Law provides that a company may establish a branch office.

To establish a branch, it is necessary to apply for registration with the company registration authority and obtain a business license. The branch does not have the legal person to be filial piety, and its civil liability is borne by the company. A company may establish a subsidiary, which has the status of a legal person and independently bears civil liability in accordance with the law.

Is there a difference between a branch office and a subsidiary.

Categories: Business Banking >> Business Management.

Problem description: Please advise! Analysis:

At present, the legal provisions and interpretations of the concepts of parent and subsidiary vary from country to country. For example, under the U.S. Model Corporation Act, if at least 90 of a company's shares in a class are publicly issued and the shares sold are owned by another company, the former is a subsidiary and the latter is the parent company. In Japan, if a company owns more than half of the share capital of another company, the former is the parent company and the latter is the subsidiary.

China's theoretical circles generally believe that the so-called parent company refers to a company that owns more than a certain percentage of the shares of another company and can exercise actual control over the other company. There is a confusing issue here, which is the difference between a subsidiary and a branch. The concept of a branch office is relative to the head office.

Many large enterprises have business in different regions, even all over the world, and directly engaged in these businesses are branches or subsidiaries set up by enterprises, and these branches or subsidiaries are branches. The company itself is called the head office or the company. Although the relationship between a branch and the head office is somewhat similar to that between a subsidiary and the parent company, the legal status of a branch is completely different from that of a subsidiary.

The branch does not have an independent legal personality and does not have the status of a legal person; A subsidiary, on the other hand, is a completely separate legal person. It should be noted that in China, due to the long-term influence of the planned economic system, the legal form of enterprises is not standardized, and the name "branch" is not used in accordance with the strict legal meaning mentioned above. Many organizations that are referred to as branches, such as the "Shanghai Branch of China Power Import and Export Corporation", are actually independent legal entities, but there is a management relationship with the head office.

The difference between a subsidiary and a branch office.

The biggest difference between a subsidiary and a branch is whether there is an independent legal personality, and a branch does not have an independent legal personality, while a subsidiary has. The content of the enterprise business registration of the Administration for Industry and Commerce is different, which is embodied in the capital contribution. The legal basis for this is Article 14 of the Company Law of the People's Republic of China

A company can set up a branch, which does not have the status of a corporate legal person, and its civil liability is borne by the company. The company may establish a subsidiary, which has the status of a corporate legal person and independently bears civil liability in accordance with the law".

Characteristics of the branch: it is a branch of the company; It has business qualifications and does not have legal personality.

Characteristics of a subsidiary: A subsidiary is a company whose certain amount of shares are held by other companies and controlled by other companies. The parent company is the one that holds shares in other companies and can control them. The parent company and the subsidiary are in an economic relationship controlled by shares, and the subsidiary has legal personality.