Do the profits of wholly-owned subsidiaries belong to the parent company?

Legal analysis: the profits of wholly-owned subsidiaries belong to the parent company. A wholly-owned subsidiary is an independent legal person with its own independent name, articles of association and organization, and carries out activities in its own name. The parent company can control the financial and business decisions of wholly-owned subsidiaries, and the profit distribution of wholly-owned subsidiaries is decided by the parent 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.