Are subsidiaries and parent companies legal persons?

Subsidiary and parent company are not legal persons. The parent company is not responsible for repaying the foreign debts of its subsidiaries. Branches and head offices are legal persons. According to relevant laws and regulations, subsidiaries have independent legal personality and can independently bear civil liabilities.

legal ground

Article 14 of the Company Law

Companies can 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.

Article 15

Companies can invest in other enterprises; However, unless otherwise provided by law, investors shall not be jointly and severally liable for the debts of the invested enterprises.