What is the difference between a holding company and a group company?

Legal analysis: the difference between a holding company and a group company: a holding company generally refers to a company form that enjoys certain control over a company by holding a certain number of shares, and a collective company generally refers to a consortium of several companies. A group company is a group company organized to act together for a certain purpose. It refers to an enterprise legal person consortium with capital as the main link, parent company as the main body and the articles of association of the group as the norm, which is composed of members such as parent company, subsidiary company and shareholding company. Generally speaking, a group company refers to a large company with many production and operation institutions. It generally manages large-scale assets, governs many production and business units, and has its own rights and interests in many other enterprises.

Legal basis: Paragraph 2 of Article 216 of the Company Law of People's Republic of China (PRC) stipulates that the controlling shareholder refers to the shareholder whose capital contribution of a limited liability company accounts for more than 50% of the total capital or whose shares of a joint stock limited company account for more than 50% of the total capital; Although the capital contribution or the proportion of shares held is less than 50%, but according to their capital contribution or shares held, shareholders have enough voting rights to the shareholders' meeting and the resolutions of the shareholders' meeting. Article 14 of the Company Law of People's Republic of China (PRC) stipulates that a company may 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.