A subsidiary refers to a company whose shares are held by another company or actually controlled by another company through an agreement. Although the subsidiary is bound by law, it still has its own name and articles of association, and has an independent organization to bear civil liability in its own name. Its property is independent from that of the parent company, and it is only responsible for the debts of the company. According to the Enterprise (Business) Law approved and registered by the administrative department for industry and commerce, or a natural person of China nationality with full civil capacity. The subsidiary is a legal person, so it can borrow money.
I. Other differences between subsidiaries and branches
1, with different legal status.
Branches have no independent legal personality and must operate activities like general exhibitions.
Subsidiaries have independent legal personality and conduct business activities in their own names.
2. Forms of expression
The branch does not have its own independent company name, articles of association and organization, and the business license only states the person in charge of the company, without statutory provisions.
A subsidiary has an independent company name, articles of association and organization, and the company name can be distinguished from the parent company, and it has a legal representative.
3. Different control methods
A branch is a branch of the head office, which conducts business through property and business.
The relationship between the subsidiary and the parent company is equity or agreement, and the parent company controls the subsidiary based on equity or agreement, mainly by appointing and removing board members or approving investment decisions.
4. Different responsibilities.
The branch company has no property independent of the head office, and its civil liability shall be borne by the head office with all its property.
A subsidiary has independent property, and is liable to the extent of all its property, while the debt of the parent company is limited.
2. Is the subsidiary legal person the same as the head office legal person?
The subsidiary law is the same. Subsidiaries also have independent shares held and controlled by other companies; It is the parent company that holds shares of other companies and can hold them; Both the parent company and its subsidiaries are qualified as shareholders.
1. A subsidiary refers to a company whose shares are held by another company or actually controlled by a company. Although the subsidiary is controlled by the parent company, it is still an independent enterprise with legal person status in law. Have its own name and articles of association, and carry out business activities in its own name. Its property and the property of the parent company are independent of each other and are responsible for their respective debts.
2. Subsidiaries shall independently bear civil liabilities according to law. Economically, but legally, a subsidiary is independent, with an independent name and articles of association, independent organization, independent property, self-financing and independent accounting, thus automatically and independently bearing all the consequences and responsibilities brought by the company's actions.
The relevant legal basis of this article.
Article 14 of the Company Law of People's Republic of China (PRC) * * 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. "General Rules for Loans" Article 2 The term "lender" as mentioned in these General Rules refers to a Chinese-funded financial institution legally established in China to engage in loan business. The borrower mentioned in these General Rules refers to legal persons, other economic organizations, individual industrial and commercial households and natural persons who have obtained loans from Chinese-funded financial institutions engaged in loan business. The term "loan" as mentioned in these General Rules refers to the monetary funds provided by the lender to the borrower and repaid the principal and interest at the agreed interest rate and time limit. The loan currencies in these General Rules include RMB and foreign currency.
2. Can I get a loan in the name of the company?
Both individuals and companies can borrow money, with the emphasis on qualifications. In the name of the company, we must look at the company's revenue in recent years, the amount of invoices, the amount of taxes, whether there are assets under the company and so on. Just a shell company with a business license is definitely not enough.
3. Can I buy a house with a loan in the name of the company?
Although the upstairs is full of idiots, it is a commercial loan, as long as you are the legal representative. Now the first-tier cities are all restricted. Many individuals can't buy a house, so they buy a house. As long as you have many companies and are legal representatives, you can buy the same suite from as many companies as you want.
4. What are the risks of personal loans in the name of the company?
It depends on how big the company is doing and whether it is smooth or not. If it goes well, it will be fine. If it doesn't go well, it will be a lot for yourself.