Legal analysis: 1. The shareholders' meeting of the merged company shall make merger resolutions respectively; 2. Each party to the merger shall prepare a balance sheet and a list of assets respectively; 3. The parties sign the merger agreement; 4. Notify creditors within 10 days from the date of making the resolution; 5. Make an announcement in the newspaper within 30 days from the date of making the resolution; 6. Accounting treatment, such as reconciliation and report consolidation; 7. Verification of paid-in capital after consolidated statements; 8. Apply to the registration authority for registration 45 days after the resolution is made. The subsidiary company applies for cancellation of registration, and the parent company applies for change registration.
Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. 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.