What is the definition and type of parent company?

A subsidiary refers to a company whose shares are held by another company or actually controlled by another company through an agreement. The parent company refers to a company that owns most of the shares of other companies at home and abroad. The company that actually controls other companies is the parent company, and the company that is actually controlled by other companies is the subsidiary company. They all have legal personality.

legal ground

Article 14 of the Company Law of People's Republic of China (PRC)

Companies can 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.