1. Positive answer
The parent company and the subsidiary are two completely independent companies in form. There is no legal difference between the name setting of the parent company and the name setting of the subsidiary company. Inevitable connection, unless the parent company intentionally sets up a connection between the two when establishing a subsidiary. A subsidiary refers to a company in which a certain amount of shares are controlled by another company or is actually controlled and dominated by another company in accordance with an agreement. A subsidiary has independent legal personality, owns all its own property, its own company name and articles of association, carries out business activities and engages in various civil activities in its own name, and independently bears all consequences and responsibilities arising from the company's actions.
2. Analysis
In international business, a subsidiary refers to a legal person enterprise of the host country established in various parts of the world by the parent company investing all or part of its shares in accordance with the law. The subsidiary is legally independent from the parent company and has an independent and complete corporate management organizational system, so it has greater independence and certain flexibility in operations. At the same time, the operating activities of subsidiaries must also be controlled by the parent company and must be subject to the overall strategy and overall interests of the parent company. But this control is indirect and is also positively related to the proportion of equity owned by the parent company.
3. What is the difference between a subsidiary and a branch?
1. The subject qualifications are different. The subsidiary has independent subject qualifications and enjoys independent legal person status, while the branch does not. It has independent civil and commercial subject qualifications. It is only a branch of the company and does not have legal person status; 2. The property relationship is different. The property of the branch belongs entirely to the company. There is no independent legal property, while the property of the subsidiary 3. The property liability is different. As an independent legal entity, the subsidiary operates independently and conducts independent accounting. All its consequences, including property liability, are fully borne by itself, while the branch, as a non-independent entity, has no independence of its own. will, therefore, the property liability arising therefrom shall also be borne by the Company.