What is a puppet company?

Puppet companies usually refer to one or more virtual economic entities that exist legally and operate for the purpose of manipulating the market, evading supervision and market competition. This concept can be understood as that a company is nominally controlled by one person or a group of people, but actually controlled by another person or a group of people. The manipulator behind this is called "puppet" or "shadow company". For example, the nominal shareholder of the company is A, but in terms of capital and management, A is subject to the manipulation of the actual investor B. A is like the "shadow" of B, so it is called "shadow company". Such companies often have hidden dangers such as false registered capital and escape of registered capital. It can even be used to commit crimes such as tax evasion and fraud, posing a potential threat to the state and public property.