There are many distinct differences between a branch office and a subsidiary. First of all, a branch office is a branch of the parent company, which does not have an independent legal status, and its rights and obligations are borne by the parent company. A branch office usually does not have independent financial and personnel rights, and its operation and management are under the direct control of the parent company. A subsidiary, on the other hand, is an independent legal entity with its own board of directors and management team, with independent financial and personnel rights, and is able to assume legal responsibilities independently.
Second, a branch office is both economically and legally an integral part of the parent company, and its financial statements are usually consolidated into the parent company's financial statements. Whereas, subsidiaries have their own financial statements and are relatively independent in their operations and financial position.
In addition, the establishment and withdrawal of a branch office usually requires only procedural operations within the parent company, while the establishment and withdrawal of a subsidiary requires complex legal and commercial negotiations.
In terms of management and control, the parent company usually has tighter management and control over the branch, as the branch does not have independent decision-making power. On the other hand, the parent company has relatively loose management and control over the subsidiary, as the subsidiary has independent decision-making power and management team.
In summary, there are clear differences between branch and subsidiary in terms of legal status, economic status, management and control. In business practice, enterprises can choose the appropriate organizational form according to their own needs to maximize business interests.