Relationship between shareholders of parent company and subsidiary company

Legal analysis: the parent company and its subsidiaries are related, and the assets of the subsidiaries are actually controlled by the parent company. At the same time, subsidiaries also have legal personality and can bear civil liability externally.

Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. 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.