Relationship between property subsidiary and parent company's funds

Although the subsidiary is an independent legal person, it can engage in various business activities within its own business scope, but its autonomy is limited. The parent company plays a leading role in the shareholders' meeting of the subsidiary company, and the management policy and investment plan of the subsidiary company are actually decided by the parent company.

Branches are established by companies outside their domicile, and they are established in the local industrial and commercial departments according to law, and there is no need for registered capital when they are established. It's a branch of the head office. Although it can also carry out business activities independently, it should be carried out within the scope authorized by the company. Generally speaking, this authorization is manifested in the form of inviting the establishment of branches. In other words, the establishment of branches in the industrial and commercial sector is regarded as the company's authorization of branches to carry out activities within the general industry.