include parents as compositions.

src/Umbraco.Core/Models/ContentType.cs

@@ -3,6 +3,7 @@ using System.Collections.Generic;
 using System.Linq;
 using System.Reflection;
 using System.Runtime.Serialization;
+using Umbraco.Core.Configuration;
 
 namespace Umbraco.Core.Models
 {
@@ -34,6 +35,10 @@ namespace Umbraco.Core.Models
         [Obsolete("This method is obsolete, use ContentType(IContentType parent, string alias) instead.", false)]
         public ContentType(IContentType parent) : this(parent, null)
         {
+            if (UmbracoConfig.For.UmbracoSettings().Content.EnableInheritedDocumentTypes)
+            {
+                AddContentType(parent);
+            }
         }
 
         /// <summary>
@@ -45,6 +50,10 @@ namespace Umbraco.Core.Models
         public ContentType(IContentType parent, string alias)
             : base(parent, alias)
         {
+            if (UmbracoConfig.For.UmbracoSettings().Content.EnableInheritedDocumentTypes)
+            {
+                AddContentType(parent);
+            }
             _allowedTemplates = new List<ITemplate>();
         }
 

src/Umbraco.Web/Editors/ContentTypeController.cs

@@ -1,4 +1,5 @@
-using System.Collections.Generic;
+using System;
+using System.Collections.Generic;
 using System.Linq;
 using System.Net;
 using System.Web.Http;
@@ -11,6 +12,7 @@ using Umbraco.Core.Services;
 using Umbraco.Core.PropertyEditors;
 using System.Net.Http;
 using Umbraco.Core;
+using Umbraco.Core.Configuration;
 using Umbraco.Web.WebApi;
 using Umbraco.Web.WebApi.Filters;
 
@@ -184,7 +186,18 @@ namespace Umbraco.Web.Editors
         /// <returns></returns>
         public ContentTypeDisplay GetEmpty(int parentId)
         {
-            var ct = new ContentType(parentId);
+            IContentType ct = null;
+            if (UmbracoConfig.For.UmbracoSettings().Content.EnableInheritedDocumentTypes &&
+                parentId != Constants.System.Root)
+            {
+                var parent = Services.ContentTypeService.GetContentType(parentId);
+                ct = new ContentType(parent, String.Empty);
+            }
+            else
+            {
+                ct = new ContentType(parentId);
+            }
+            
             ct.Icon = "icon-document";
 
             var dto = Mapper.Map<IContentType, ContentTypeDisplay>(ct);