Can the parent and subsidiary companies be separated?

Parent-subsidiary companies are not inseparable. The parent company and the subsidiary company are two independent individuals, and the subsidiary company has independent legal person qualification, litigation qualification and independent civil liability. There are essential differences between the company branches and subsidiaries of the parent company.

legal ground

Article 14 of the Company Law

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 175

When the company is divided, its property shall be divided accordingly.

When the company is divided, it shall prepare a balance sheet and a list of assets. The company shall notify the creditors within 10 days from the date of making the resolution of separation, and make an announcement in the newspaper within 30 days.