Can foreign companies set up foreign subsidiaries?

Article 14 of the Company Law stipulates the establishment of subsidiaries by foreign-funded enterprises. A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law. When establishing a subsidiary, a foreign-capital enterprise shall submit an application for establishment to the industrial and commercial registration authority according to law.

legal ground

People's Republic of China (PRC) Foreign Investment Law Article 31 The organizational form, organization and activity criteria of foreign-invested enterprises shall be governed by the Company Law of People's Republic of China (PRC) and the Partnership Law of People's Republic of China (PRC). Article 14 of the Company Law of People's Republic of China (PRC) * * 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. 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.