What are branches, wholly-owned subsidiaries and holding subsidiaries? What is the difference? I don't study economics, I hope it can be popularized!

1, branch, corresponding to the head office. Generally, the business of a branch company is the same as that of the parent company, and it is engaged in production and operation in the name of the head office;

2. The subsidiary corresponds to the parent company. The business of the subsidiary and the parent company can be inconsistent, or it can be the specific business of the parent company. The parent company generally owns more than 50% of the voting rights of the subsidiaries, or the parent company can control the business decisions of the subsidiaries. According to the different ownership of the parent company to its subsidiaries, it can be divided into wholly-owned subsidiaries (holding 100%) and holding subsidiaries (holding more than 50% and less than 100%). Less than 50% are basically joint ventures.

3, 50% is a general standard. As long as it can control the company, it can be counted as a subsidiary. A little less than 50% is also possible.

4. In addition, the parent company and subsidiaries generally participate in the preparation of the consolidated financial statements of the parent company.