Q&A| Can a Subsidiary Use Enterprise Standard of Parent Company?

2024-01-26    SAMR    76  

Can the wholly-owned subsidiary implement the enterprise standard formulated by the parent company? Is the authorization or document approval required?

Q: If the parent company has formulated the enterprise standard in accordance with regulations and made self-disclosure, after the establishment of a wholly-owned subsidiary, can the wholly-owned subsidiary implement the enterprise standard formulated by the parent company? Is the authorization or document approval required?

A: In accordance with the relevant provisions of Article 14 of the Company Law, the parent company and the wholly-owned subsidiary are independent legal persons, and the subsidiary shall engage in business activities in its own name and independently bear civil liabilities. After the establishment of a wholly-owned subsidiary, the wholly-owned subsidiary may implement the enterprise standard formulated by the parent company and shall obtain the authorization of the parent company.

Source: SAMR

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