The difference between holding companies and subsidiaries

Legal analysis: the holding company, that is, the parent company, refers to a company that holds more than 50% equity of a company; The company controlled by another company is a subsidiary of that company.

Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. 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.