Subsidiary shareholding ratio

Legal analysis: subsidiaries should hold more than 50% of the shares with voting rights. A subsidiary refers to an invested enterprise controlled by another company, and generally needs to hold more than 50% of the shares to have control.

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.