The relationship between parent company and subsidiary company, head office and branch company.

1, parent company: symmetry of "subsidiary". A company that owns most of the shares of other companies at home and abroad. Companies controlled by them are called subsidiaries. A subsidiary may also have its own subsidiary, which is the grandson company of the parent company. Generally speaking, the parent company has more capital and stronger economic strength, so it can implement highly centralized management of its subsidiaries and enjoy decision-making power over their major business activities such as production and sales, fund raising, personnel arrangement and profit distribution. The parent company is mostly a monopoly, usually a holding company.

2. In international business, a subsidiary refers to a corporate enterprise of the host country established all over the world with all or part of its shares invested by the parent company. The subsidiary is legally independent from the parent company and has an independent and complete company management organization system, so it has greater independence and certain flexibility in operation. At the same time, the business activities of subsidiaries should also be controlled by the parent company and obey the needs of the overall strategy and interests of the parent company. However, this control is indirect and positively related to the proportion of equity owned by the parent company.

3. The head office refers to the headquarters of an enterprise with independent legal personality. It is the leading organ of its affiliated institutions and has control over the production, sales, finance and personnel of its branches. In China, the resident status of a company is determined by its headquarters. The company headquartered in China is a tax resident company in China and bears unlimited tax liability to China; A company not headquartered in China is not a resident company in China, and only bears limited tax liability to China.

4. 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.

Tips: The above contents are for reference only.

Reply time: 202 1-04-08. Please refer to the latest business changes announced by Ping An Bank in official website.

[I know Ping An Bank] Want to know more? Come and watch I Know Ping An Bank ~

/paim/iknow/index.html