1. A subsidiary refers to a company whose shares are held by another company or actually controlled by another company through an agreement. Although the subsidiary is controlled by the parent company, it is still an independent enterprise with legal person status in law. Have its own name and articles of association, and carry out business activities in its own name. Its property and the property of the parent company are independent of each other and each is responsible for its own debts.
2. Subsidiaries shall independently bear civil liabilities according to law. Subsidiaries are economically dominated and controlled by the parent company, but legally, subsidiaries are independent legal persons. The independence of subsidiaries is mainly manifested in: having an independent name and articles of association; Having an independent organization; Have independent property, be responsible for its own profits and losses, and conduct independent accounting; Carry out various non-governmental economic activities in its own name; Independently bear all the consequences and responsibilities brought by the company's actions.
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.