What does the parent company mean?

Legal analysis: parent company refers to a company that owns a certain number of shares in other companies or can control and dominate other companies' personnel, finance, business and other matters according to the agreement. The most basic feature of the parent company is not whether it holds the shares of the subsidiary, but whether it participates in the operation of the subsidiary.

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.