1, wholly-owned subsidiaries of state-owned enterprises have certain administrative nature. 2. The wholly-owned subsidiary of a state-owned enterprise is a wholly state-owned company. 3. A wholly state-owned company refers to a limited liability company solely funded by an institution authorized by the state or a department authorized by the state. Article 14 of the Company Law A company may 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.