That is to say, if Company A has two subsidiaries, B and C, then Company A is called parent company or head office, and Company B and Company C can be subsidiaries of Company A or subsidiaries of Company A respectively. It depends on the form in which company A is established, and two companies, B and C, are established.
According to the company law, a company 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.
Extended data:
Article 14 of the Company Law of People's Republic of China (PRC) stipulates:
"The company can set up a branch. 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.
A subsidiary is an independent legal person. From a legal point of view, it has both independent operational autonomy and independent financial autonomy, but it cannot be separated from the unified strategic planning of the parent company.
Subordinate units (such as subsidiaries of the head office) are not independent legal persons and do not have legal personality. They are only branches or agencies of the head office in production or operation. Even if they can carry out independent accounting and even have internal legal personality, they can't sign contracts and take risks.
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