Advice 1: What is the difference between branch and subsidiary

To understand the difference between a branch and a subsidiary, you can look to the Civil code. In detail, painted features and powers of these units of the parent enterprise. Businessman before expanding its activities, you should understand that the opening of units will be more profitable.
What is the difference between branch and subsidiary
Many businesses do not see the difference between the opening of branch, representative office or subsidiary. Meanwhile, it is very noticeable. Before taking the decision on reorganization of existing production, you should understand the terms and choose the most suitable form of expansion.

What is the enterprise branch?



These words are a separate subdivision of a legal entity that provides its full range of powers or only part of it. The branch company or organization may be in the territory of a foreign state. In this case, must be agreed upon all aspects of its activities with the legislation of this country, as it may greatly differ from the domestic.

Branch mandatory included in the uniform state registry, but the legal entity is not. He is submissive to the leadership of the head of the company and exercises its powers only on the basis of a power of attorney. That such "separate division, branch and representation, according to article 95 of the civil code. The Civil code stipulates all the stages of opening of the branch.

What is a subsidiary?



It is more independent separate unit is formed by the transfer of the property of the parent enterprise in full economic management of the subsidiary. Its founding Charter identifies subsidiaries and ownership of the transferred property.

This form of management for the head office is beneficial in that it frees itself from the obligation to lead the workflow on this object and is satisfied by receipt of key reports on the work of its subsidiary. The primary responsibility for its activities lies with the parent company appointed by the Manager. He is engaged in the organization of work, the promotion division, in charge of all current operations. But I have to agree on all the main costs and solutions with the head office.

Thus, we conclude: a subsidiary is more independent unit endowed with much wider powers on the part of the settlor with the property transferred to it by right of ownership. Branch opportunities in terms of self-management and workflow is much more limited.

Advice 2: What is the difference between a Director and a CEO

As will be referred to the head of the enterprise or organization - President, Director or CEO, is stipulated in the Charter of the company. But on what principle selects the name for the head and how built his employment with the company, you need to understand that turning to the law.
What is the difference between a Director and a CEO

How to "call" the head of the company


Between the head of the enterprise and the enterprise there are contractual relationships. They are governed by Federal laws including: Labour Code of the Russian Federation, Federal laws "On joint-stock companies, About limited liability companies" and other normative and legal documents and acts approved by the subject of Federation or territorial local authority.

In the founding documents of the organization and, in particular, its Charter should be written, as will be naimenovaniya its head – the individual directing and performing the functions of the sole Executive body, as set out in article 273 of the Labor Code. According to him, the founders can choose any name: Director, CEO, Chairman or President, there is no difference, essentially it does not change the rights and obligations of the head of independent.
The head of the organization is appointed a natural person elected to the position by the General meeting or took her on a competitive basis.


So you can choose any name, but should still take into account the specifics of work, area of activity and volumes of production of that particular organization. If it is small, its head may, without any prejudice to his authority to be called the Director. But in the case when this is a fairly large enterprise with, for example, multiple branches and subsidiaries, the Directors may naimenovaniya their leaders, and the General will be the one who carries out the General management. The Director-General may naimenovaniya Director and in the case when the company provided post, for example, technical, financial or Executive Directors.
Signed on behalf of the employer in the employment contract puts the person specified in the Charter. It could be the Chairman of the General meeting of founders or the Chairman of the Board of Directors.

Features of labor relations with the Director


No matter how he named the head of the organization, in accordance with article 20 of the labour code, the employment contract with him as an employer must be indicated the organization itself. The basis for admission to employment and the employment contract will be the decision of the founders or their authorized body – the Board of Directors. All these nuances should be reflected in the Charter.
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