Benefits of establishing a wholly-owned subsidiary

Legal analysis: first, managers can completely control the daily business activities of subsidiaries in the target market and ensure that valuable intangible assets such as technology and technology remain in subsidiaries. Second, if the company wants to coordinate the activities of all its subsidiaries, wholly-owned subsidiaries will be a very good entry mode.

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.