How did the company become independent from its wholly-owned subsidiary?

A wholly-owned subsidiary needs to follow certain legal procedures when it is independent from the parent company. Generally speaking, independence can be achieved in two ways: acquisition and new construction.

Acquisition means that the parent company exchanges shares or assets of other companies for its own subsidiaries. New establishment means that the parent company establishes a new company from scratch and takes it as its own subsidiary.

Either way, it needs to meet the requirements of relevant laws and regulations, such as company registration and financial accounting reports.

In addition, wholly-owned subsidiaries need independent strategic planning and financial management to ensure the independence and stability of the company.