Wholly Owned Subsidiary

Wholly Owned Subsidiary

A subset of subsidiary, a wholly owned subsidiary is a corporation whose shares are owned entirely by one shareholder. There are many reasons for a parent to have a wholly owned subsidiary. For example, a wholly owned subsidiary can:
  1. Hold specific assets or liabilities.
  2. Be used as an operating corporation of a particular division.
  3. Shield the parent from particular liabilities.
  4. Be used to make an acquisition.


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