1. Survival division, also known as derivative division: refers to the division of a company into more than two companies, and the original company continues to exist and establishes more than one new company;
2. Dissolution and separation, also known as derivative separation, refers to the division of a company into two or more companies, and the dissolution of the original company and the establishment of two or more new companies.
In the separation mode, the original company continues to exist but the registered capital is reduced. The original shareholder's share proportion in the original company and the new company can remain unchanged. In practice, the common company division is that the original company changes its branches into wholly-owned subsidiaries with legal personality. At this time, the head office is also transformed into the parent company. The parent company is only responsible for the debts of the newly established subsidiary to the extent of its investment.
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