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The difference between divisional system and office

The difference is as follows: an office refers to an organizational group in a certain place and does not need to obtain administrative licensing procedures from the industrial and commercial department.

There are no fixed requirements for business projects and business locations and can be flexibly changed.

If the tax department levies taxes, they will also be levied based on fixed tax amounts for general items or for individual businesses.

There are generally two understandings: ① Refers to a department or administrative unit of the government that handles affairs. The former is such as the Beijing Office of the Hong Kong Special Administrative Region Government, the United Nations Children's Fund in China, the United Nations European Office, etc., and the latter is such as those in various parts of China.

Street offices, etc.

② A place where certain business is conducted or services are provided, such as the Beijing office of the German Academic Exchange Service, the Shanghai office of Cathay Pacific Airways, etc.

Refers to an organizational group in a certain place that does not need to obtain administrative licensing procedures from the industrial and commercial department.

There are no fixed requirements for service items and locations and can be flexibly changed.

The office is an unincorporated institution with no independent accounting.

Therefore, the office is not allowed to make purchases or sales, so there is no need to file/pay taxes.

The office does not have a corporate nature, and everything must be done through the head office, including invoicing and collection.

Therefore, the office only has a coordinating role.

The divisional system is a common organizational structure form that was first originated and applied to General Motors in the United States.

The business unit structure is also called the branch company structure.

The business unit system is an organizational structure form that is created to meet the organizational requirements of enterprise scale expansion and diversified operations.

The specific design ideas are: set up multiple business divisions under the leadership of the head office, combine decentralized management with independent accounting, and divide business units, that is, business divisions, according to products, regions or markets (customers).

Each business unit has its own products and specific markets, and can complete all functions from production to sales of a certain product.

The business department is not an independent legal person enterprise, but it has greater operating authority, implements independent accounting, and is responsible for its own profits and losses. It is a profit center. From an operational perspective, the business department is not much different from ordinary companies.