What are holding subsidiaries and wholly-owned subsidiaries?

The wholly-owned subsidiary 100% invested, and the shareholder is only one large company, which owns 100% equity. The holding subsidiary has more than one shareholder and at least two shareholders. Among all shareholders, large companies have the largest shareholding ratio, or although the shareholding ratio is not the largest, they have the actual control and management rights of subsidiaries.

legal ground

Article 14 of the Company Law

Branches and subsidiaries 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.