What exactly does a subsidiary mean?

A subsidiary, also known as a subsidiary, is a company actually controlled by another company. The entity that controls it is called the parent company or the holding company. A natural person cannot become a subsidiary of an organization, and only a legal person stipulated in the Civil Code can become a subsidiary.

legal ground

Article 14 of the Company Law stipulates that a company may 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.