Affiliation is definitely illegal. Affiliation means that you are not qualified to contract, and you need to borrow other people's qualifications to contract. The state explicitly forbids this kind of behavior. Some units or individuals can't engage in economic activities in their own names, so they will be affiliated with units with independent legal personality and pay a certain fee to the affiliated party for the affiliated behavior. This kind of behavior is illegal, and the affiliated behavior is a typical fraud. The related party borrows the name of others to operate in violation of the spirit of the law, or borrows the name of others for the sake of prosperous business, although it can operate independently, and the third party often trades with the related party based on its trust. Because all foreign business activities of affiliated cooperation are carried out in the name of affiliated enterprises, they are independent civil subjects in China and have their own interests. Associated enterprises use their qualifications, brands and reputation to undertake projects abroad, so as to maximize their own interests. Except for paying certain management fees to affiliated enterprises, all construction activities are carried out independently by affiliated enterprises, so it is difficult for affiliated enterprises to implement effective supervision. Once responsible for the outside world, affiliated enterprises should bear legal responsibilities according to law.

Article 66 of the Construction Law of People's Republic of China (PRC), if a construction enterprise transfers or lends its qualification certificate or allows others to undertake projects in its own name by other means, it shall be ordered to make corrections, confiscate its illegal income and impose a fine, and may be ordered to suspend business for rectification and lower its qualification level; If the circumstances are serious, the qualification certificate shall be revoked. If the contracted project does not meet the prescribed quality standards and causes losses, the construction enterprise and the unit or individual using the name of the enterprise shall bear joint and several liability.

Article 80 of the Administrative Licensing Law of People's Republic of China (PRC), if a licensee commits one of the following acts, the administrative organ shall give administrative punishment according to law; If the case constitutes a crime, criminal responsibility shall be investigated according to law:

(a) alter, resell, lease, lend the certificate of administrative license, or illegally transfer the administrative license in other forms;

(two) activities beyond the scope of administrative license;

(3) Concealing relevant information from the administrative organ in charge of supervision and inspection, providing false materials or refusing to provide true materials reflecting its activities;

(four) other illegal acts as prescribed by laws, regulations and rules.

What are the legal consequences of affiliation?

The legal consequences of subordination are as follows:

1. The construction contract signed is invalid. Relevant laws clearly stipulate that construction contracts signed by unqualified actual builders in the name of qualified construction enterprises are invalid;

2 affiliated enterprises shall bear joint and several liability for the quality of construction projects and revoke their qualification certificates;

3. Both the affiliated party and the affiliated party may face criminal punishment.