What is the difference between a wholly-owned subsidiary and a holding subsidiary?

Legal analysis: The difference between a wholly-owned subsidiary and a holding subsidiary is that a wholly-owned subsidiary is established with full capital contribution from the investor, and a large company owns all the shares of the wholly-owned subsidiary; The controlling shareholder of the holding subsidiary does not own all the shares of the holding subsidiary, but only accounts for a relatively large proportion and has actual control over the company.

Legal basis: People's Republic of China (PRC) Company Law.

Article 14 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.

Article 57 The provisions of this section shall apply to the establishment and organization of a one-person limited liability company. Where there are no provisions in this section, the provisions in the first and second sections of this chapter shall apply. A one-person limited liability company as mentioned in this Law refers to a limited liability company with only one natural person shareholder or one corporate shareholders.