Relationship between parent company and subsidiary company: the subsidiary company is actually controlled by the parent company, and the control relationship is based on the ownership of equity or control agreement. The parent company and subsidiaries are independent legal persons. A subsidiary has its own name and articles of association, and conducts business activities in its own name. Its property and the property of the parent company are independent of each other and each is responsible for its own debts.
legal ground
Article 14 of the Company Law of People's Republic of China (PRC)
Companies can 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.