Legal analysis: when a company establishes a subsidiary, the subsidiary must have legal person status and independently bear civil liability according to law. The head office applies to the local industrial and commercial authorities outside its domicile for the establishment of a branch office, which belongs to the establishment of a branch office.
Legal basis: Paragraph 3 of Article 14 of the Company Law of People's Republic of China (PRC), a company may set up a subsidiary, which has the status of a legal person and independently bears civil liability according to law.