1, wholly-owned subsidiaries are generally controlled by the parent company;
2. The relationship between the parent company and the wholly-owned subsidiary is based on the agreement on the possession or control of shares;
3. The parent company and wholly-owned subsidiaries are independent legal persons, and the subsidiaries have legal personality and independently bear civil liabilities according to law.
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.