Can a subsidiary sign a loan agreement with the parent company alone?

A subsidiary needs a loan agreement to borrow from the parent company. A subsidiary has the status of a legal person and independently bears civil liability according to law. The subsidiary and the parent company shall sign a loan agreement on loan matters, mainly including the loan type, currency, purpose, amount, interest rate, term and repayment method.

legal ground

Article 14 of the Company Law of People's Republic of China (PRC)

Companies can set up branches. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have 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.

Article 667 of the Civil Code of People's Republic of China (PRC)

A loan contract is a contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest.