A subsidiary refers to a company whose shares are held by another company or actually controlled by another company through an agreement. Sun company refers to the subsidiary established by the company's subsidiary, so the subsidiary established by the subsidiary is the company's sun company.
Article 14 of the Company Law stipulates: "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. The branch does not have legal person status, and its civil liability shall be borne by the company. " "A company can set up subsidiaries, which have legal personality and independently bear civil liability according to law."
Extended data:
A branch refers to a branch under the jurisdiction of the head office in terms of business, funds and personnel. Not qualified as a legal person. A branch company is a branch of the head office. It has no independence in law and economy, does not have the qualification of an enterprise legal person, and is only a subsidiary of the head office.
A branch company has no name, articles of association or property, and it shall bear legal liability for the debts of the branch company with the assets of the head office.
Subsidiaries shall independently bear civil liability according to law. Subsidiaries are economically dominated and controlled by the parent company, but legally, subsidiaries are independent legal persons.
The independence of subsidiaries is mainly manifested in: having an independent name and articles of association; Having an independent organization; Have independent property, be responsible for its own profits and losses, and conduct independent accounting; Carry out various non-governmental economic activities in its own name; Independently bear all the consequences and responsibilities brought by the company's actions.
References:
Baidu encyclopedia-? company law
Baidu encyclopedia-branch
Baidu encyclopedia-subsidiary