Does the parent company need to bear the corresponding debts after the cancellation of the subsidiary?
When the subsidiary is cancelled, the creditor's rights and debts of the subsidiary shall not be borne by the parent company. According to relevant laws and regulations:
1. Article 3 of the Company Law of People's Republic of China (PRC) stipulates: Corresponding to the subsidiary,
head office
The parent company and the subsidiary company are two independent individuals, who are respectively responsible for the debts of the company with all their property;
2. Paragraph 2 of Article 13 of the Company Law of People's Republic of China (PRC) stipulates that a company may set up a subsidiary, which has the status of an enterprise legal person and independently bears civil liability according to law;
3. Article 14 of the Company Law of People's Republic of China (PRC) stipulates that a company may set up branches, which shall apply to the company registration authority for registration and obtain a business license. This branch does not have the legal person status, and its civil liability shall be borne by the company. A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.
What's the difference between a subsidiary and a branch?
1. The branch has no independent legal personality, but the subsidiary has;
2. The content of enterprises in the industrial and commercial registration of the Administration for Industry and Commerce is different, which is embodied in the capital contribution;
3. The company can set up branches, which do not have the qualification of enterprise legal person, and their civil liabilities shall be borne by the company; A company may establish subsidiaries, which have the status of enterprise legal persons and independently bear civil liabilities according to law.