A subsidiary may be established as a limited liability company or a joint stock limited company. A subsidiary cannot use the qualification of the parent company. A subsidiary company has the status of a legal person and can bear civil liability independently. When it goes bankrupt, there is no need for the parent company to repay its debts. According to relevant laws and regulations, subsidiaries can pay taxes independently.
Legal objectivity:
Article 24 of the Company Law stipulates that a limited liability company shall be established with the contribution of shareholders with less than 50 persons.