What is the difference between a branch and a subsidiary?

The difference between a branch and a subsidiary is obvious. The specific differences are as follows: First, a subsidiary has independent entity qualifications and enjoys the status of an independent legal person, while a branch is a branch of the head office and does not have the status of an independent legal person. It has independent civil and commercial subject qualifications and does not have the qualifications of a legal person; secondly, a subsidiary has its own independent name, and a branch needs to be named a certain branch; thirdly, a subsidiary is an independent legal person The legal will of the main body is completely independent of the parent company. The parent company cannot directly order and direct the operation and management activities of the subsidiary company. As a branch of the head office, the branch company is responsible for the execution of its business and the use of funds. Transfers, allocations, etc. are completely led by the head office and managed by the head office; fourth, although the subsidiary company has the participation of the parent company, its property belongs entirely to itself, while the property of the branch belongs to the head office.

Legal basis:

Article 14 of the "Company Law of the People's Republic of China" A company may establish a branch. To establish a branch, one must apply for registration with the company registration authority and obtain a business license. A branch does not have legal personality and its civil liability shall be borne by the company. A company may establish a subsidiary company, which shall have legal personality and independently bear civil liability in accordance with the law.