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Under what circumstances can a branch company be established

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Under what circumstances can a branch company be established


        

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  • 2024-05-29 01:01:21

    If the business activities of a registered company outside the jurisdiction where the company is registered constitute one of the following circumstances, it is necessary to establish a branch in the place where the business activities take place:

    1. If the company signs a contract in the name of an institution other than the company's place of registration, the institution without business qualification shall not sign a contract;

    2. Engaging in production, processing, packaging, sub packaging and other production activities outside the company's registration place;

    3. It is necessary to issue invoices to buyers at the company's registration place;

    4. It is necessary to set up a collection counter outside the company's registration place to collect money;

    5. It is necessary to set up a warehouse or counter outside the company's registration place to deliver goods to buyers;

    6. It is necessary to set up financial accounts for accounting income and expenditure outside the company's registration place.

    [Legal Basis]

    In Article 14 of the Company Law, a company may set up branches. To establish a branch, an application for registration shall be filed with the company registration authority and a business license shall be obtained. A branch does not have the status of a legal person, and its civil liability shall be borne by the company.

    The Company may establish subsidiaries, which have the status of legal persons and independently bear civil liabilities according to law.

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