What is a Subsidiary?
A subsidiary is a company controlled by another company, known as the parent company. Learn about the definition, types, and importance of subsidiaries, and how they can help businesses expand, gain access to new technologies, and reduce costs.
Save 90% on your legal bills
What is a Subsidiary?
A subsidiary is a company that is controlled by another company, known as the parent company. In this article, we will explore the definition, types, and importance of subsidiaries.
What are the Types of Subsidiaries?
There are several types of subsidiaries, including:
Wholly-owned Subsidiaries
These are subsidiaries where the parent company owns 100% of the shares.Partially-owned Subsidiaries
These are subsidiaries where the parent company owns a minority of the shares.Joint Ventures
These are subsidiaries where two or more companies come together to form a new company.
Why are Subsidiaries Important?
Subsidiaries play an important role in the business world, as they can help companies:
Expand their operations into new markets or industries.
Gain access to new technologies or expertise.
Reduce costs and increase efficiency.
Enhance their reputation and brand.
How do Subsidiaries Impact Businesses?
In this article, we will delve deeper into the definition, types, and importance of subsidiaries, as well as provide examples and case studies to illustrate their impact on businesses.
