{"id":215810,"date":"2022-06-08T19:15:52","date_gmt":"2022-06-08T06:15:52","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=215810"},"modified":"2022-07-19T19:13:34","modified_gmt":"2022-07-19T06:13:34","slug":"multiple-companies-own-subsidiary","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/corporations\/multiple-companies-own-subsidiary\/","title":{"rendered":"Can Multiple Companies Own a Subsidiary Company in NZ?"},"content":{"rendered":"\n

Whether you are just starting out in the business sphere or running an existing business, you may have thought about setting up subsidiary companies. Subsidiary companies can be useful for many reasons. For example, you might want to carve out specific parts of the larger business, minimise risks, and protect key assets of the larger business, such as its <\/span>intellectual property<\/span><\/a>. Therefore, it is important to know what a subsidiary company is and wh<\/span>ether multiple companies can own a subsidiary company.<\/span><\/p>\n\n\n\n

This article will outline what a subsidiary company is, and how using one might benefit your business. \u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n\n\n\n

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What is a Subsidiary Company?<\/span><\/h2>\n\n\n\n

A subsidiary company is a company that is owned by another company. Broadly speaking, this is also described as a parent-child relationship<\/span>. The company controlling the subsidiary is the parent company and the subsidiary company is the child company. <\/span><\/p>\n\n\n\n

The parent company can have multiple subsidiaries (or child companies), which are all accountable to the parent company. Generally, you can do this in an <\/span>ultimate holding company<\/span><\/a> structure<\/span>. This is where the parent company (<\/span>or holding company) holds 100% of the shares in<\/span> the subsidiary companies.<\/span><\/p>\n\n\n\n

Notably, there are strict rules for determining when a company is a subsidiary company. These include whether the parent company:<\/span><\/p>\n\n\n\n