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.

What is a subsidiary accounting process?

If your company owns a subsidiary or is a subsidiary of another company, the accounting processes are different from traditional, single-entity accounting. This is because there are often shared expenses, revenues, and other line items that could bloat the real totals and ultimately land the company in serious legal trouble.

What is the difference between a subsidiary and a fully own subsidiary?

Subsidiary is a company that is owned by another company, parent or holding company. The subsidiary usually owned by the parent or holding company from 50% up to 100%. If the Parent company owned less than 100% of the total share, it is called Partially own subsidiary. Fully own subsidiary is the company that parent owned 100% of the total share.