What is a wholly-owned holding company?
A wholly-owned company means that the ultimate investor is the parent company. \ x0d \ x0d \ Holding company refers to a company that controls a company by holding a certain number of shares. Holding companies are divided into pure holding companies and mixed holding companies according to their holding methods. Pure holding companies do not directly engage in production and operation business, but only carry out capital operation by holding shares of other companies. Hybrid holding companies not only carry out capital operation through holding, but also engage in some production and operation businesses. \x0d\\x0d\ complete holding is not a strict legal concept. Usually, it means to achieve absolute control over another company by holding an absolutely dominant number of shares or equity. Full control does not require 100% of the shares. For example, the company's articles of association stipulate that all affairs of the company are valid only if more than 80% of the shares are passed. At this time, as long as the controlling shareholder holds more than 80% of the shares, it can realize the substantial control of the company. \ x0d \ x0d \ The controlling shareholder is the subject that enjoys complete control over the company, not only the company, but also individuals. In addition, if multiple entities jointly control the company through agreement, they can also be identified as controlling shareholders. \ x0d \ x0d \ holding means that a company controls a company by holding a certain number of shares. Holding companies are divided into pure holding companies and mixed holding companies according to their holding methods. Pure holding companies do not directly engage in production and operation business, but only carry out capital operation by holding shares of other companies. Hybrid holding companies not only carry out capital operation through holding, but also engage in some production and operation businesses. \ x0d \ x0d \ An institution that holds more than 50% of the shares or is sufficient to control the business activities of a joint-stock company.