What is a subsidiary company?

A subsidiary is a company that is more than 50% owned by a parent company or holding company. Subsidiaries are separate and distinct legal entities from their parent companies. Companies buy or establish a subsidiary to obtain specific synergies or assets, secure tax advantages, and contain or limit losses.

Is a subsidiary a division of a parent company?

A subsidiary functions as a separate legal entity rather than a division of the parent company. It is sometimes referred to as a daughter company. ^ "Daughter Company Definition".

Does a subsidiary have a CEO?

Subsidiaries do have their own CEO, management team and board of directors. The parent company does have sway over who holds those positions, though. A subsidiary is a company that is owned or controlled by a parent or holding company. Usually, the parent company will own more than 50% of the subsidiary company.