A wholly-owned subsidiary refers to a subsidiary wholly owned or controlled by a single parent company. A joint venture company is generally defined as a joint venture company established by two companies with the same investment capital, each of which owns part of the shares and shares the profits, expenses, risks and control rights of the company.
2. Different systems
The wholly-owned subsidiary system is just the opposite of the joint venture system. The legal status of a wholly-owned subsidiary is an independent legal person, but it only has the authority of the division system. The assessment method of wholly-owned subsidiaries is the profit center responsibility system, so the wholly-owned subsidiary system is actually the business department system.
The joint venture company shall determine the rights and obligations of shareholders in the company in proportion to their capital contributions. A joint venture is an enterprise with two systems. Correctly handling the relationship between the two ownership systems is an effective measure to promote cooperation and increase the vitality of enterprises.
3. Different legal status
A wholly-owned subsidiary shall independently bear civil liability according to law. Subsidiaries are economically dominated and controlled by the parent company, but legally, subsidiaries are independent legal persons.
A wholly-owned subsidiary refers to a company whose shares are held by another company or actually controlled by another company through an agreement. Although the subsidiary is controlled by the parent company, it is still an independent enterprise with legal person status in law. Have its own name and articles of association, and carry out business activities in its own name. Its property and the property of the parent company are independent of each other and each is responsible for its own debts.
References:
Baidu encyclopedia-joint venture company
Baidu encyclopedia-wholly-owned subsidiary