1, not equal; A secondary subsidiary can be either a subsidiary or a branch. A subsidiary refers to a company whose shares are held by another company or actually controlled by another company through an agreement. A subsidiary has the status of an independent legal person. Independently bear civil liability according to law;
2. Different relationships; The secondary company is the direct subordinate of the primary company. The first-level company controls all the power of the second-level company's operation and personnel, and the first-level subsidiary is only a holding relationship, not a direct subordinate. Theoretically, we can't interfere with the operation and personnel appointment of subsidiaries at will. Subsidiaries hold more shares and occupy a dominant position, which is upgraded from the second level to the first level;
3. Different grades; The first-level subsidiaries generally belong to the provincial level, and the second-level subsidiaries are generally prefecture-level subsidiaries;
4. Different definitions: the first-level company is a branch directly established and governed by the head office, and the second-level subsidiary is a branch directly established and governed by the first-level branch or the first-level subsidiary.
The procedure for revoking a branch is as follows:
1. Go to the industrial and commercial bureau where the branch is located to receive the application for cancellation of registration of the branch;
2. Prepare relevant materials for cancellation of registration. Including application, ID card of the agent, company resolution, business license, bank account settlement certificate, tax payment certificate, official seal of the branch, etc. , subject to the requirements of the local industrial and commercial bureau;
3. Submit the materials and applications, and cancel the branch for filing after being approved by the Industrial and Commercial Bureau.
To sum up, the first-level subsidiary is managed and decided by the parent company, and the second-level subsidiary is managed and decided by the first-level subsidiary. The first-level subsidiary is a subsidiary directly invested by the parent company, and the second-level subsidiary is a subsidiary invested by the first-level subsidiary.
Legal basis:
Article 14 of the Company Law of People's Republic of China (PRC)
Companies can set up branches. 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.