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Yes, it is possible!
On v6.x, it was possible to define a "parent partner" on the partner form view in the tab "Sales and Purchases". Technically, this field was called parent_id
On v7, this field is not there anymore, at least by default. With the developer mode, I looked at the fields available for the object Customer (res.partner) and parent_id is still there in the DB. So basically, you can make this field visible on the form view in v7 (with the view editor for example). I tested on runbot and it works. (For some reason, its default label is "Related Company" but you can change that to "Parent Company" if you want).
The result is that you can see companies within companies on the same level than their contacts. Here are some screenshots where Vicking Direct is the parent of Agrolait:
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|Asked: 2/21/13, 8:19 AM|
|Seen: 2452 times|
|Last updated: 3/16/15, 8:10 AM|