How to transfer a wholly-owned subsidiary

Legal analysis: 1 procedures for equity transfer of a wholly-owned subsidiary, signing an equity transfer agreement with the receiver; 2. The subsidiary signs a new resolution of shareholders' meeting to amend the articles of association (which the subsidiary can do); 3. Transfer the agreed equity transfer money to the subsidiary, which will transfer it to the company, or if the agreement decides to deliver it privately, the new shareholder will directly transfer the funds to the company; 4. Bookkeeping. Recover long-term investment.

Legal basis: Article 72 of the Company Law of People's Republic of China (PRC). Shareholders of a limited liability company may transfer all or part of their shares to each other.

Under the same conditions, other shareholders have the priority to purchase the equity transferred with the consent of shareholders. Where two or more shareholders claim to exercise the preemptive right, their respective purchase proportions shall be determined through consultation. If negotiation fails, the preemptive right shall be exercised in accordance with their respective investment proportions at the time of transfer.