Does the parent-subsidiary company need to sign a contract to borrow money?

A subsidiary needs a loan agreement to borrow from the parent company, because the subsidiary is an independent legal person. Article 14 of the Company Law stipulates that a company may 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.