The parent company and subsidiary company are two independent legal persons, which is the relationship between investment and investment. Holding company refers to a company that owns a certain equity and controls the enterprise. Holding companies are divided into pure holding companies and mixed holding companies according to their holding methods. Pure holding companies do not directly engage in production and business operations, but only hold shares of other companies for capital operation. In addition to capital management, hybrid holding companies are also engaged in some production and operation businesses.
What does a wholly-owned subsidiary mean?
A wholly-owned subsidiary refers to a company with only one legal shareholder, that is to say, all the shares of the subsidiary are controlled by the parent company. Both the parent company and its subsidiaries are independent legal persons with legal personality and can independently participate in foreign business activities.