Everything has its rationality. The reason why multi-level series enterprises are established is mainly because they have many benefits for the operators of enterprises.
We use a case: Zhang San invested in a garage A in his early years, mainly engaged in the sales of various auto parts and car maintenance; With the accumulation of time, Zhang San's money has been increasing, so he wants to expand. Through market research and personal connections, Zhang San wants to enter the textile and garment industry. If he directly produces in the original garage A, then Zhang San will change the business scope, change the articles of association, redo the EIA report and other procedures for A, and have to set up two sets of management teams, because the production and operation contents are completely different, otherwise the accounts will be easily confused. In addition, since the newly expanded enterprise is a joint venture with friends, if A is the main business entity directly, the equity of enterprise A will be dispersed. However, as Zhang San's main source of funds, Zhang San is not willing to diversify A's equity. ..
Therefore, after consulting relevant professionals, Zhang San decided to set up enterprise B directly by the original enterprise A, with enterprise B as the main body, independently operating the business of shoes and clothing factory and conducting independent accounting; In addition, if Zhang San wants to introduce investors, he only needs to invest with investors to set up enterprise B, which will not affect his absolute control over enterprise A. It is perfect.
In reality, the top level of many large enterprises is the group company, which directly invests in various subsidiaries, and then the subsidiaries conduct production and operation. The head office only controls the overall situation of each subsidiary, and the specific operation is decided by each subsidiary. Subsequent subsidiaries can also set up Sun Company and Da Sun Company according to their own needs, layer by layer, and operate independently.
Responsibility is independent, and many people may not understand what it means. We will continue to analyze the above cases.
With the continuous expansion and expansion of business scale, Zhang San established Group A with full investment. At present, the Group has five subsidiaries, namely B, C, D, E and F, among which enterprise B is a joint venture with others, with a capital contribution of 20 million yuan and 50% of the shares.
Because each subsidiary is an independent enterprise legal person and operates independently, each enterprise can carry out financing independently. Suppose subsidiary B raised 1 100 million yuan, and then went bankrupt due to poor management, making it insolvent. If Group A does not provide guarantee for the financing of enterprise B, then because company B is a limited liability company, Group A only needs to bear the loss with its investment amount (20 million yuan). For the loss beyond investment, Group A is irresponsible, and all litigation-related information and bad credit information are owned by Company B, which has no influence on Group A and four subsidiaries of CDEF. Excluding Company B, Group A has no influence except investment loss.
But suppose that Zhang San's A Group doesn't set up five subsidiaries B, C, D, E and F, and these five parts are five divisions within A Group itself. All external business must be carried out in the name of A Group. Once B Division loses money, all consequences will be borne by A Group, which has a great impact on the overall operation of A Group. Therefore, by setting up subsidiaries and Sun Gongzi, business risks can be avoided.
Although China's overall tax policy is formulated by the state, due to China's vast territory and different levels of economic development, different places will give different preferential measures to different types of enterprises according to their own local conditions.
For example, Zhejiang Province has tax incentives for cross-border e-commerce industry, but Zhang San's A Group is registered in Fujian Province. If Fujian does not have this policy, then Zhang San's A Group will not have tax incentives for cross-border e-commerce business; At this time, by setting up a subsidiary in Zhejiang to focus on cross-border e-commerce business, then Group A's cross-border e-commerce business will have tax incentives; In addition, many regions also have preferential policies on income and land transfer for newly introduced investment enterprises, which can avoid taxes; Even some parent and subsidiary companies avoid or transfer taxes through various related transactions. The simplest example is that many enterprises are registered in Cayman Islands, which is the mode of thinking.
There are many benefits of establishing subsidiaries and Sun Company, which are difficult to explain one by one. For example, in addition to the above three points, through the establishment of subsidiaries and sun companies, on the one hand, investors are introduced to reduce the risk of independent operation; On the other hand, it also reduces the expenditure of capital flow, frees up more funds to participate in other investments, and constantly expands its business map. So everything exists for a reason, and it is impossible for an enterprise to do it for no reason every time.