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Clause. 1. Characteristics of the branch: 1. It is a branch of the company; 2. Have business qualifications; 3. It does not have the status of a legal person.
2. Characteristics of subsidiaries: 1. A certain amount of shares of a subsidiary is held and controlled by a certain company. 2. The subsidiary has an independent legal personality.
3. Recognizing the similarities and differences between branches and subsidiaries is conducive to identifying which option is more suitable for the development of one's own enterprise. Similarities: all have business qualifications and have their own office space; Differences:
1) The branch does not have the status of a corporate legal person and cannot independently bear civil liability externally, and its civil liability shall be borne by the company that established the branch. The subsidiary has the status of an independent corporate legal person and can independently bear civil liability in accordance with the law, and the parent company is not liable for the debts of the subsidiary. (2) The name of the enterprise is different.
The branch is to put the name of the branch in front, followed by the name of a certain place plus the branch; Subsidiaries can come up with their own names and do not need to add the name of the parent company. (3) The content of the enterprise industrial and commercial registration of the Administration for Industry and Commerce is different, which is embodied in the capital contribution. Legal basis:
Article 13 of the Company Law of the People's Republic of China A company may set up a branch, and the branch does not have the status of an enterprise legal person, and its civil liability shall be borne by the company. The company may set up a subsidiary, which has the status of a corporate legal person and independently bears civil liability in accordance with the lawArticle 39 of the Regulations of the People's Republic of China on the Administration of Registration A branch refers to an institution established by the company to engage in business activities outside its domicile. A branch office does not have legal personality.
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Of course, it's good to manage the branch, and it's not the same to go out and mix this qualification. You're going to the head office, and you're a little soldier.
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Subsidiaries and branches have their own advantages and disadvantages, depending on the purpose and actual needs of the parties to set up the company. The subsidiary has the status of a legal person and can independently bear civil liability in accordance with the law; However, a branch office does not have the status of a legal person, and its civil liability for losses and coarse losses shall be borne by the company, and the specific type of company to be established shall be determined by the parties themselves.
Company Law of the People's Republic of China
Article 14. A company can set up a distribution town company. 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.
Civil Code of the People's Republic of China
Article 74.
A legal person may establish a branch office in accordance with the law. Where laws and administrative regulations provide that branch offices shall be registered, follow those provisions.
If a branch engages in civil activities in its own name, the civil liability arising therefrom shall be borne by the legal person;
It is also possible to bear the property of the branch management Hu Bu first, and if it is not enough, it shall be borne by the legal person.
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