What are the main types of holding subsidiaries?

Legal analysis: Holding subsidiaries are mainly divided into wholly-owned holding subsidiaries, leading holding subsidiaries, high-quality shareholding subsidiaries and arbitrary shareholding subsidiaries. The type of holding subsidiary is determined according to the number of shares held by the parent company. Different types of subsidiaries hold different shares. For example, a wholly-owned subsidiary means that the parent company holds all the shares of 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 21 The controlling shareholders, actual controllers, directors, supervisors and senior managers of a company shall not use their related relationships to harm the interests of the company.

Anyone who violates the provisions of the preceding paragraph and causes losses to the company shall be liable for compensation.