Can a subsidiary acquire a parent company?

Legal analysis: the holding subsidiary can buy the parent company. When a subsidiary acquires a parent company, it must meet certain conditions and must not infringe upon the interests of the company and shareholders.

Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. 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.