Affiliated company là gì

Peggy James is a CPA with 8 years of experience in corporate accounting và finance who currently works at a private university.quý khách hàng vẫn xem: Affiliated company là gì

What Are Affiliated Companies?

Companies are affiliated when one company is a minority shareholder of another. In most cases, the parent company will own less than a một nửa interest in its affiliated company. Two companies may also be affiliated if they are controlled by a separate third tiệc ngọt. In the business world, affiliated companies are often simply called affiliates.

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The term is sometimes used to lớn refer to companies that are related to lớn each other in some way. For example, Bank of America has many different affiliated companies including Bank of America, U.S. Trust, Landsafe, Balboa, và Merrill Lynch.

Two companies are affiliated when one is a minority shareholder of another. The parent company generally owns less than a một nửa interest in its affiliated company, và the parent keeps its operations separate from the affiliate. Parent businesses can use affiliates as a way to lớn enter foreign markets.Affiliates are different than subsidiaries, which are majority-owned by the parent company.

Companies may be affiliated with one another khổng lồ get inlớn a new market, lớn maintain separate brvà identities, to raise capital without affecting the parent or other companies, & to save sầu on taxes. In most cases, affiliates are associates or associated companies, which describes an organization whose parent has a minority stake in it.

Understanding Affiliated Companies

There are several ways companies can become affiliated. A company may decide to buy out or take over another one, or it may decide to lớn spin off a portion of its operations into lớn a new affiliate altogether. In either case, the parent company generally keeps its operations separate from its affiliates. Since the parent company has a minority ownership, its liability is limited, and the two companies keep separate management teams.

Affiliates are a common way for parent businesses lớn enter foreign markets while keeping a minority interest in a business. This is especially important if the parent wants lớn shake off its majority stake in the affiliate.

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Affiliates Versus Subsidiaries

An affiliate is different from a subsidiary, of which the parent owns more than một nửa. In a subsidiary, the parent is a majority shareholder, which gives the parent company"s management & shareholders voting rights. Subsidiary financials may also appear on the parent company"s financial sheets.

But subsidiaries remain separate legal entities from their parents, meaning they are liable for their own taxes, liabilities, and governance. They are also responsible for following the laws and regulations where they are headquartered, especially if they operate in a different jurisdiction from the parent company.

An example of a subsidiary is the relationship between the Walt Disney Corporation & sports network ESPN. Disney owns an 80% interest in ESPN, making it a majority shareholder. ESPN is its subsidiary.

In e-commerce, an affiliate refers to lớn a company that sells the products of another merchant on its website.

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SEC Rules Surrounding Affiliates

Securities markets around the world have rules that concern affiliates of the businesses they regulate. Here again, these are complex rules that need to lớn be analyzed by local experts on a case-by-case basis. Examples of rules enforced by the SEC include:

Before disclosing nonpublic personal information about a consumer to a nonaffiliated third tiệc ngọt, a broker-dealer must first give sầu a consumer an opt-out notice & a reasonable opportunity to opt out of the disclosure.Broker-dealers must maintain và preserve certain information regarding those affiliates, subsidiaries, và holding companies whose business activities are reasonably likely khổng lồ have a material impact on their own finances & operations.

Tax Consequences of Affiliates

Determining whether companies in a group are affiliates, subsidiaries, or associates is done through a case-by-case analysis by local tax experts.