The difference between spv company and general subsidiaries

Dear, the answer to your question about the difference between spv company and general subsidiaries is as follows: SPV is the full name of special purpose entity, which usually refers to a legal entity established only for a specific and specific purpose. Compared with ordinary companies, SPV often has no independent management and operation functions except for the specific purpose of its establishment. The direct purpose of SPV is to hold some assets at the lowest possible cost (operating cost, management cost, tax burden cost, time cost, etc.). Ordinary companies generally refer to legal persons or other social and economic organizations that use various factors of production (land, labor, resources, technology and entrepreneurial talents, etc.). ) Provide goods or services to the market for profit, and carry out independent operation, self-financing and independent accounting. I sincerely hope I can help you and wish you a happy life! If you think it's helpful, please praise it. Thank you!