The difference between the first-level subsidiary and the second-level subsidiary of state-owned enterprises

Legal analysis: 1, with different scope. A secondary company can be a subsidiary or a branch; A subsidiary refers to a company whose shares are controlled and dominated by another company, and it has the status of an independent legal person.

2. Different levels. The secondary company is the direct subordinate of the primary company, and the primary company controls all the powers of the secondary company, such as operation and personnel. The subsidiary is only a holding relationship, not a direct subordinate. In theory, it cannot interfere with the operation and personnel appointment of the subsidiary at will.

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.