The difference between group companies and holding companies

Legal analysis: the difference between a holding company and a group company: a holding company generally refers to a company form that enjoys certain control over a company by holding a certain number of shares, and a collective company generally refers to a consortium of several companies.

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

Article 7 A company established according to law shall be issued a business license by the company registration authority. The date of issuance of the business license of the company is the date of establishment of the company.

The company's business license shall specify the company's name, domicile, registered capital, business scope, name of legal representative and other matters.

Where the matters recorded in the company's business license change, the company shall register the change according to law, and the company registration authority shall issue a new business license.

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.