A subsidiary is an undertaking that is controlled by another undertaking, often referred to as the holding or parent company. The specific criteria for what constitutes control are defined by legislation, such as the Companies Act. Typically, a subsidiary's financial statements are consolidated into the financial statements of the parent company.
A wholly owned subsidiary is a company whose entire stock is owned by another company, known as the parent company or holding company. This structure provides the parent company with complete control over the subsidiary.
