How to deal with the subsidiary?

Legal analysis: A company can set up wholly-owned subsidiaries and holding subsidiaries. The establishment of wholly-owned subsidiaries shall be registered in accordance with the provisions of the Company Law on wholly state-owned companies or one-man companies. The establishment of a holding company shall conform to the provisions of the Company Law on limited liability companies and be registered as a limited liability company according to law.

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.