Distinguishing branches, representative offices, and business locations

Businesses after a period of operation often tend to expand their business scale. At that time, businesses can choose one of the following forms: establishing a branch, representative office or business location. So what’s the difference between a branch, representative office or business location? ANT Legal will answer questions as follows:

Based on the provisions of corporate law, ANT Legal provides a number of criteria to distinguish branches, representative offices, and business locations as follows:

CriteriaBranchRepresentative officeBusiness location
Scope of business establishEnterprises have the right to establish branches at home and abroadEnterprises have the right to establish representative offices at home and abroadIn or outside the province or city where the enterprise is headquartered.
Perform business functions businessYesNoYes
Business lines of the parent companyRegistered in allOnly authorized representativesRegistered in some business lines of the company parent company.
Name namingMust bear the business name. Has the phrase “branch”Must bear the business name. Has the phrase “Representative Office”Must bear the business name. There is the phrase “Business location”
Registration certificateYesYesYes
Signing a business contractSigning a business contract economicNot allowed to sign contractsNot allowed to sign contracts
Separate invoicesIndependent accounting: separate invoices are required

Dependent accounting: possible

Not allowed to use invoices invoiceUsing invoices by company
Private sealIndependent accounting: required to have its own seal

Dependent accounting: possible

Depending on the needs of the business, it may or may not have its own sealDo not use seals
Accounting taxIndependent or dependentDependentDependent
Establishment proceduresMost complicatedSimpleSimple most
Procedures for terminating operationsComplicated and require tax finalizationSimple and must fulfill tax obligationsSimple and no tax finalization
Tax types must be payLicense tax

Corporate income tax

Personal income tax

Value added tax

License tax

Personal income tax

License tax

The above are the regulations on Distinguishing branches, representative offices, and business locations.

Practical points to review

For the topic “Distinguishing branches, representative offices, and business locations”, readers should compare the legal rule with the actual documents, parties involved, timeline and evidence before choosing a course of action.

  • Identify the legal relationship, signing authority and documents creating rights or obligations.
  • Check deadlines, notices, payment records, approvals and evidence that may affect the legal position.
  • Assess whether negotiation, document correction, complaint, arbitration, court proceedings or another route is suitable.

Documents to prepare

  • Contracts, annexes, decisions, notices, emails, messages, payment records and handover/acceptance minutes where relevant.
  • Enterprise, asset, license or identity documents connected to the matter.
  • A short timeline of key events and the outcome expected from the review.

When to seek legal advice

If the matter has high value, strict deadlines, multiple parties, unclear evidence or potential dispute risk, consider discussing the file with ANT Legal before signing, responding or filing a claim.

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