Legal analysis: subsidiaries can file for bankruptcy. According to the second paragraph of Article 14 of the Company Law, a company may set up a subsidiary, which has the status of a legal person and independently bears civil liability according to law. Although the parent company has control over the subsidiary, it is independent in property liability, and the parent company only obtains investment income from the subsidiary. The factoring company has no obligation to pay off the debts of the parent company, and its subsidiaries will not be affected by the bankruptcy of the parent company if they operate well. If a subsidiary company is insolvent and unable to repay its due debts, it should apply for bankruptcy separately according to the bankruptcy law, instead of being included in the bankruptcy procedure of the parent company and being liquidated together. Therefore, subsidiaries have independent legal persons and financial systems, rules and regulations. , and has the qualification to apply for bankruptcy separately. Therefore, a subsidiary can apply for bankruptcy if its assets are insolvent, unable to pay off its due debts, its assets are insufficient to pay off all its debts or it obviously lacks solvency.
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.