A branch is a dependent unit of the enterprise, responsible for performing all or part of the functions of the enterprise, including the function of authorization for the enterprise, including the function of authorized representative. Although a branch is allowed to carry out business activities, it is only a unit under the company and has no independent legal status.
The advantage of establishing a branch is that the branch can operate as a parent company, has the right to register its own seal, and sign economic contracts on behalf of the parent company. A branch can also declare and pay taxes separately as an independent unit if it is registered as an independent accounting branch. This makes it convenient for customers to just go to the nearest branch to transact instead of going directly to the company’s head office.