How does the parent company acquire the equity of its subsidiary?

1. Reach the acquisition intention and sign the acquisition letter of intent. 2. Conduct legal and financial investigation on the target company. 3. Sign an equity transfer agreement after passing the inspection. 4. Prepare materials for industrial and commercial change registration. 5. Relevant issues that should be paid attention to in the change of industrial and commercial registration of equity acquisition within 15 days after the signing of the Equity Transfer Agreement. Article 14 of the Company Law of People's Republic of China (PRC) 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.