1. The difference between a holding subsidiary and a wholly-owned subsidiary is as follows:
(1) Different shareholders, the wholly-owned subsidiary has multiple shareholders; A wholly-owned subsidiary has only one shareholder;
(2) Different stock rights, the head office of a wholly-owned subsidiary has only a part of the stock rights of the wholly-owned subsidiary; The head office of a wholly-owned subsidiary of a wholly-owned subsidiary owns 100% equity;
(3) With different control rights, wholly-owned subsidiaries may not have the actual control rights and management rights of subsidiaries; A wholly-owned subsidiary A wholly-owned subsidiary has the actual control and management rights of the subsidiary.
2. Legal basis: Article 14 of People's Republic of China (PRC) Company Law.
Companies can set up branches. 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.
Article 57
The provisions of this section shall apply to the establishment and organization of a one-person limited liability company; Where there are no provisions in this section, the provisions in the first and second sections of this chapter shall apply. A one-person limited liability company as mentioned in this Law refers to a limited liability company with only one natural person shareholder or one corporate shareholders.
Second, the subsidiary must be wholly owned?
A subsidiary may not be fully controlled. Holding companies only need to control subsidiaries with a shareholding ratio of more than 50%, which is different from full holding. A subsidiary refers to a company whose shares are controlled by another company or actually controlled and dominated by another company according to an agreement. A subsidiary has the status of an independent legal person, owns all its own property, its own company name, articles of association and board of directors, conducts business activities and engages in various civil activities in its own name, and independently bears all consequences and responsibilities brought about by the company's actions. However, major decisions or major personnel arrangements involving the interests of the company still have to be decided by the parent company.