Legal analysis: Legally, subsidiaries have the status of independent legal persons. Have its own company name and articles of association, and conduct business activities in its own name. Its property is independent of the parent company. In terms of legal responsibilities, subsidiaries and parent companies also bear their own legal responsibilities within the limits of all their property, which are not related to each other. Under normal circumstances, the parent company does not have to bear the creditor's rights and debts of the subsidiary company, unless the property of the subsidiary company is related to the property of the parent company. However, if the capital contribution is not in place or the capital contribution is withdrawn or the assets of the company are mixed, the parent company needs to bear the debts of its subsidiaries accordingly.
Legal basis: Article 13 of the Company Law of People's Republic of China (PRC) * * * A company may set up a branch, which does not have the qualification of an enterprise legal person, and its civil liability shall be borne by the company.
A company may establish subsidiaries, which have the status of enterprise legal persons and independently bear civil liabilities according to law.