subsidiary

USAGE SUMMARY

The word 'subsidiary' is correct and usable in written English.
It is typically used to refer to a company or organization that is controlled by another company or organization. For example: The tech company is launching a subsidiary to focus on developing software for government agencies.

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

During the hearing, it emerged that neither HMRC, the Treasury or the UK bank regulators appear to have questioned why HSBC's Swiss subsidiary had become a magnet for thousands of rich people across Europe and whether there was any systemic problem in the bank's governance.

The Guardian

Multimap will operate as a wholly owned subsidiary of Microsoft, which did not disclose the price of the acquisition.

The Guardian

McDonald's is accused of channelling money through a Luxembourg-based subsidiary with a Swiss branch to exploit a generous tax break on intellectual property rights.

The Guardian - Business

This article was amended on 10 May 2010, to clarify that it was the live elements of Channel 4's Alternative Election Night which were made by Endemol UK subsidiary Zeppotron.

The Guardian

In 2012, the Knights Templar cartel in neighboring Michoacan state burned five warehouses and dozens of vehicles owned by Sabritas snack company, a Mexican subsidiary of PespsiCo.

The Guardian

Much of the advertising work for API was handled by an Edelman subsidiary, Blue Advertising.

The Guardian - Business

"Normally you've got a subsidiary, so you can nearly always go through the courts of the local place where it all took place,' says Day. "The problems are firstly that you have to find the costs, secondly the process will take many years and third is corruption".

The Guardian

In some of the most brutal and personal exchanges of this parliament, Miliband seized on reports published by the Guardian an hour before prime minister's questions showing seven Tory donors had bank accounts in HSBC's Swiss subsidiary.

The Guardian

Margaret Hodge, who chairs the committee, said it appeared that activities related to the Geneva branch of HSBC's Swiss subsidiary were "pretty outrageous" and told Homer that tax investigators should have spoken to whistleblower Hervé Falciani, who obtained the list while employed as an IT worker in 2007.

The Guardian

According to Echegaray, HSBC's subsidiary in Argentina designed a platform to help clients hide funds in Swiss accounts.

The Guardian - Business

Transport minister Edwina Hart recently announced the creation of a non-for-profit subsidiary of the Welsh government, which could potentially run rail services from 2018.

The Guardian

Expert writing Tips

Best practice

Use "subsidiary" to specifically denote ownership and control, as opposed to other terms like 'affiliate' which may imply a less direct relationship.

Common error

Avoid using "branch" as a direct substitute for "subsidiary". A branch is typically an extension of the main company, whereas a "subsidiary" is a separate legal entity, though controlled by the parent company.

Linguistic Context

The term "subsidiary" primarily functions as a noun, denoting a company controlled by a parent company. Ludwig AI confirms its common usage in this sense. It can also function as an adjective, meaning auxiliary or subordinate.

Expression frequency: Very common

Frequent in

News & Media

68%

Formal & Business

28%

Science

2%

Less common in

Academia

1%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

The term "subsidiary" is a common and grammatically correct noun used to describe a company owned and controlled by another company, known as the parent company. Ludwig AI confirms this usage. It can also serve as an adjective meaning auxiliary or subordinate. Its usage is frequent in news and business contexts, appearing in reputable sources like The Guardian and The Economist. Related terms include "daughter company" and "affiliated company". A key distinction to remember is that a "subsidiary" is a separate legal entity, unlike a branch.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

daughter company

Uses a more familial term to describe the relationship between the parent and owned company.

sister company

Indicates a company with a shared parent organization.

controlled entity

Focuses on the control exerted by one entity over another.

affiliated company

Emphasizes the connection and association between the companies without necessarily implying ownership.

dependent company

Highlights the reliance of one company on another.

branch

Refers to a local office or division of a larger organization.

division

Highlights a specific segment or unit within a larger company.

unit of

Describes the relationship where one company is a unit of another.

part of

Describes the relationship where one company is a part of another.

associate company

Suggests a close working relationship without full ownership.

FAQs

How is a "subsidiary" different from a branch?

A "subsidiary" is a separate legal entity controlled by a parent company, while a branch is merely an extension of the main company and not a separate legal entity.

What are some synonyms for "subsidiary"?

Alternatives to "subsidiary" include "daughter company", "affiliated company", or "branch" depending on the specific context.

What does it mean when a company is described as a "wholly owned subsidiary"?

A "wholly owned subsidiary" means the parent company owns 100% of the "subsidiary's" stock and has complete control over its operations.

Is it correct to use "subsidiary" when referring to a non-profit organization?

While "subsidiary" typically refers to for-profit companies, it can be used for a non-profit if the non-profit is controlled by another organization. However, the term "affiliate" might be more appropriate in some cases.