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What is the difference between branch and subsidiary company?
- A branch company is a branch of the company. It has business qualifications but does not have legal personality, and cannot independently assume civil liabilities. Its civil liability is bared by the company that establishes the branch company. The name of the branch company has to set up branch name in front, followed by the name of the company plus a branch location;
- A certain amount of shares of a subsidiary are held and controlled by the parent company, but they have independent legal personality. Civil liability can be assumed independently and externally according to law, and the parent company is not liable for the debts of the subsidiary company. Subsidiaries can name themselves without adding the parent company’s name.