The parent company and subsidiaries are independent legal persons.
Although subsidiaries are actually controlled by the parent company, restricted and managed by the parent company in many aspects, and some of them are actually similar to the branches of the parent company, legally speaking, subsidiaries belong to independent legal persons, engage in business activities in their own names and independently bear civil liabilities.
Subsidiaries have their own articles of association, board of directors and other corporate decision-making bodies. A subsidiary has its own independent property, and the property it actually occupies and uses belongs to the subsidiary and has its own balance sheet. The subsidiary and the parent company shall bear their respective responsibilities to the extent of their own property and shall not be related to each other.
As the largest shareholder of the subsidiary, the parent company is only responsible for the debts in the operating activities of the subsidiary to the extent of its capital contribution to the subsidiary. To set up a subsidiary, an application must be made in strict accordance with the requirements for setting up a company, and business can be started only after obtaining a business license and going through relevant formalities according to law.
Therefore, subsidiaries cannot use the qualifications of the parent company.
Extended data:
The parent company requires two conditions:
1. It must have one or more subsidiaries, that is, it must meet the control requirements stipulated in the consolidated statement standards, be able to decide the financial and business policies of another enterprise, and gain benefits from the business activities of another enterprise. The parent company can only control one subsidiary, and can also control multiple subsidiaries at the same time.
2. The parent company can be an enterprise, such as a joint stock limited company or a limited liability company as stipulated in the Company Law, or it can be the main body, such as other organizations that do not belong to the enterprise form but form accounting entities, such as funds.
Baidu encyclopedia-parent company
Baidu encyclopedia-subsidiary