Can a limited liability company set up a subsidiary?

Legal analysis: Limited companies can set up subsidiaries. Where a company establishes a subsidiary, it shall apply to the company registration authority for registration of establishment and obtain a business license according to law. A subsidiary has the status of a legal person, can conduct independent accounting and bear civil liability independently according to law.

Legal basis: People's Republic of China (PRC) Company Law.

Article 5 A company engaged in business activities must abide by laws, administrative regulations, social ethics and business ethics, be honest and trustworthy, accept the supervision of the government and the public, and assume social responsibilities.

The legitimate rights and interests of the company are protected by law and shall not be infringed.

Article 14 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.