A subsidiary is a company that is owned or controlled by another company, known as the parent company. The subsidiary operates independently but is ultimately under the control of the parent company. Subsidiaries are often established to expand the parent company’s business into new markets or industries. They may also be used to limit the parent company’s liability or to take advantage of tax benefits.
A subsidiary is a company that is owned and controlled by another company, known as the parent company.
The purpose of a subsidiary is to allow the parent company to expand its operations into new markets or industries, while maintaining control over the subsidiary’s operations.
A subsidiary is formed by the parent company creating a new company or acquiring an existing company and then owning a majority of the subsidiary’s shares.
The legal requirements for a subsidiary vary depending on the jurisdiction in which it is formed, but generally include registering with the appropriate government agencies and complying with local laws and regulations.
The benefits of having a subsidiary include increased market share, access to new markets and customers, and the ability to diversify the parent company’s operations.
The risks of having a subsidiary include potential legal liabilities, financial risks, and reputational risks.
In some cases, a subsidiary can be held liable for the actions of the parent company, particularly if the subsidiary is found to be acting as an agent of the parent company.
Yes, a subsidiary can be sold or transferred to another company, subject to any legal requirements or restrictions.
The relationship between a parent company and its subsidiary is typically one of control, with the parent company having the power to make decisions and direct the operations of the subsidiary.
The tax implications of having a subsidiary vary depending on the jurisdiction in which it is formed and the tax laws of that jurisdiction. Generally, a subsidiary may be subject to its own tax obligations, separate from those of the parent company.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 13th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/subsidiary/
- Modern Language Association (MLA):Subsidiary. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/subsidiary/.
- Chicago Manual of Style (CMS):Subsidiary. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/subsidiary/ (accessed: May 09 2024).
- American Psychological Association (APA):Subsidiary. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/subsidiary/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts