What is a Subsidiary?

A subsidiary is a business that operates under the control of another business. The parent or holding company is the ‘other’ company.

A subsidiary may either be built from the ground up or acquired.

Since the parent corporation owns a large amount of shares in the subsidiary, it has the ability to exert control over it.

A wholly-owned subsidiary is one in which the parent company owns 100 percent of the shares in the subsidiary.

Adani Logistics Ltd, for example, is a wholly owned subsidiary of Adani Ports and SEZ Ltd.

What is a Subsidiary?
What is a Subsidiary?

Leave a Reply