Parent company: A parent company refers to a company that owns most of the shares of other companies at home and abroad. Companies controlled by them are called subsidiaries. A subsidiary may also have its own subsidiary, which is the grandson company of the parent company. Generally speaking, the parent company has more capital and stronger economic strength, so it can implement highly centralized management of its subsidiaries and enjoy decision-making power over their major business activities such as production and sales, fund raising, personnel arrangement and profit distribution.
legal ground
Article 14 of the Company Law
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.