Operating Subsidiary

A registered business entity that is entirely (100%) or partially (50%) owned by another company is referred to as a subsidiary. The term “owner company” can also apply to a parent firm or a holding company.

A subsidiary is run independently from the parent firm, which is only responsible for oversight. Additionally, subsidiaries can be related if they share a parent or holding company; in this case, they are referred to as sister firms.

A holding company is a business that doesn’t run its own operations; instead, it merely owns majority or minority shares as well as assets in other businesses. In contrast, a parent company does operate as a business and may hold minority or controlling stakes in other firms that operate in industries that are comparable to its own in terms of products and services offered, or it may operate in a completely unrelated field.

Related Terms

Manage and Control Subscription Payments