What do you mean by parent company and parent company?

Parent company and head office have different meanings. The parent company refers to the company that effectively controls the invested economic entities through foreign direct investment. Generally, the companies it invests in are subsidiaries with independent legal personality. The head office refers to the head office of an enterprise with independent legal personality, which is generally an institution that controls branches. Branches generally do not have legal personality, but are only dispatched offices of the head office.

legal ground

Article 7 of the Company Law of People's Republic of China (PRC)

A company established according to law shall be issued a business license by the company registration authority. The date of issuance of the business license of the company is the date of establishment of the company.

The company's business license shall specify the company's name, domicile, registered capital, business scope, name of legal representative and other matters.

Where the matters recorded in the company's business license change, the company shall register the change according to law, and the company registration authority shall issue a new business license.

Article 14

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.