1. The company is both a legal person and an organization. The branch is not a legal person and does not need a legal representative. It is believed that all the business activities of the branch are under the command of the head office, and only the person in charge is needed. The branch needs to apply for a business license.
2. Legal basis: Company Law
Article 115 A company may not provide loans to directors, supervisors or senior managers directly or through subsidiaries.
Article 14 A company may set up branches. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company.
A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.
What's the difference between a subsidiary and a branch?
1, subject qualifications are different.
The subsidiary has independent subject qualification and enjoys independent legal person status. Branches do not have independent civil and commercial subject qualifications and legal person qualifications.
2. The appellation is different.
Branches have no independent names, and subsidiaries have their own independent names.
3. Independence is different.
As an independent legal person, the subsidiary is independent in law, and the parent company cannot directly direct the operation and management activities of the subsidiary. As a branch of the company, the branch is completely controlled by the company in business execution and fund allocation.
4. The property relationship is different.
In the structure of property relationship, although the subsidiary has the participation of the parent company, it still owns its own property. The property of the branch company belongs to the company and is an inseparable part of the company's property.
The above is the question about whether the branch company needs a legal representative, which I hope will help you.