The advantages of setting up a subsidiary include: ① it is conducive to business development; 2 financing is more convenient; (3) It is conducive to creative management; (4) It is beneficial to recover the investment, which can be recovered by merging with other companies or selling shares; ⑤ It is conducive to international tax avoidance and tax avoidance activities of the parent company. Disadvantages include: ① complicated procedures; (2) the management cost is relatively high; ③ There are some difficulties in management.