What is the procedure of enterprise separation?

Legal analysis: Derivative separation refers to the separation form in which a company separates part of its assets or business according to the conditions and procedures prescribed by law and establishes one or more new companies or branches, while the original company continues to exist.

Legal basis: Article 175 of the Company Law of People's Republic of China (PRC) is divided, and its property should be divided accordingly.

When the company is divided, it shall prepare a balance sheet and a list of assets. The company shall notify the creditors within 10 days from the date of making the resolution of separation, and make an announcement in the newspaper within 30 days.