Simply put, a subsidiary is a company owned by another company, usually referred to as a Holding Company or a Parent Company.

Ownership in this regard refers to control.

Why do you need Subsidiaries ?

Expansion of Operations geographically

Structuring your business lines to aid effective management

Diversification into newer markets

To optimize efficiency in a large group

To protect parent companies from certain risks associated with a particular business activity.

#BoardroomswithMojola is run by Mojolaoluwa Olaifa , a Corporate Governance expert and founder of Zyden Legal .

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