Nature of subsidiary companies
What is the legal status of subsidiary companies in Hong Kong?
Subsidiaries operate in Hong Kong as private limited companies and thus are treated as separate legal entities from their parent companies. Therefore, when you are thinking of incorporating a subsidiary company in Hong Kong then you should know that your parent company will not be liable for anything that a subsidiary company engages itself.
That implies that your Hong Kong subsidiary company will operate under completely different managerial aspects from the parent company and the management must be in-line with the required Hong Kong laws of the Company’s Registry.
Besides, the subsidiary company will have its independent accounts, transactions, litigation, and or incur all the losses or enjoy the benefits thereof. The subsidiary company that you are incorporating in Hong Kong can either use the parent name or you can choose to use a different name. In either case, the name you settle on must be approved by the Companies Registries of Hong Kong.