Legal analysis: as a major shareholder, the parent company enjoys the rights of asset income, major business decisions and operator selection. In the position and function of parent-subsidiary management, the parent company is in a dominant position and the subsidiary company is in a controlled position. In terms of legal relationship, the relationship between parent company and subsidiary company is independent and equal; In terms of property rights, the parent-subsidiary relationship is the relationship between the controlling shareholder of a legal person and an enterprise legal person with capital as the link.
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.