Hi, i'm looking in possibility of setting up subsidiary for US firm for which i'm currently working as contractor to qualify for L1 visa after next year of work.

I'm curious about last sentence in subsidiary definition:

"(parent) owns, directly or indirectly, less than half of the entity, but in fact controls the entity."

What are possible examples of control without ownership? What legal documents can be provided to prove such relationship?

That is part of the definition but USCIS rarely accepts it. This would somehow mean control of the board of directors of the sub.