A company linked in some sense to another company, often for mutual business benefit including shared resources or collaborative efforts.
An affiliated company refers to a business entity wherein one company owns less than a majority of the voting stock of the other, or both entities are subsidiaries of a third company. In banking, it involves organizations that a bank owns or controls through stock holdings, or where the bank's shareholders and officers hold significant control or interlocking directorships.
Agglomeration refers to the accumulation into a single entity, such as a holding company, of several diverse and unrelated activities. Conglomerate companies often embody this concept.
A company incorporated under the laws of a foreign country regardless of where it operates. 'Alien corporation' can be synonymous with 'foreign corporation,' but the latter can also refer to a corporation formed in a different U.S. state than where it conducts business.
The Articles of Association is a legal document that defines a company's regulations, governance, and the rights, duties, and responsibilities of its members (shareholders) and directors.
A business organization refers to the legal structure of a particular business in terms of how it functions. Its purpose is central to its structure.
C.C.C. stands for 'Cwmni Cyfyngedig Cyhoeddus,' which is the Welsh equivalent of a Public Limited Company (plc) in English. It refers to a type of company in Wales that is permitted to offer its shares to the public.
Understanding Captive Finance Companies, their benefits, structure, and role in providing financial services aligned with the parent company's product sales efforts.
Centralized management occurs when day-to-day business operations are handled by appointed officers rather than the shareholders, a characteristic that indicates that an organization may be taxed as a corporation.
A closely held corporation in the USA is a public corporation that has a limited number of stockholders, with relatively few of its shares actively traded.
A Community Interest Company (CIC) is a special type of limited company that exists primarily to benefit the community or with a social purpose, rather than to maximize profit for shareholders.
A conglomerate is a large corporation formed by the merger or acquisition of smaller companies, each operating in distinct, often unrelated, industries. This structure is typically chosen to diversify risk and achieve financial stability across various market sectors.
A constituent company is a firm that is part of a group of affiliated, merged, or consolidated corporations. These companies work together, often sharing resources and strategies, to achieve mutual corporate goals.
Setup of an organization in terms of departments and agencies; distribution and delegation of functional responsibilities throughout an organization. Reacting to a complex environment of business, the modern organization has become very complex, usually having many departments with a wide array of responsibilities.
A de facto corporation is an entity that operates as a corporation in fact but lacks formal incorporation or official recognition by law.
Domestic corporations are entities established under the laws of the United States, operating primarily within the country, and are subject to federal and state regulations.
Fellow subsidiaries are subsidiaries that are part of the same parent group of companies, sharing a common controlling parent company but operating independently of each other.
A foreign corporation is a legal entity that is registered outside the state or country in which it primarily conducts business. It is important to distinguish between out-of-state corporations and alien corporations.
The front office refers to the offices of the major executives within a company; it is the nucleus of the operational management center, often located near the entrance of the organization.
A group company is a term referring to an organization that is either a subsidiary undertaking or a holding company within a larger conglomerate.
Group income refers to a dividend paid by one group company to another within the same corporate structure. These dividends received are not subject to corporation tax.
A holding company is a type of corporation that owns other companies' outstanding stock. Its primary purpose is to own shares of other companies to form a corporate group.
An immediate holding company has a controlling interest in another company but is itself controlled by a third company, commonly known as the holding company. It plays a key role in corporate structure and governance.
An incorporated company results in a legal entity that is distinct from its owners, providing limited liability protection and other benefits.
Incorporation is the process by which a company is officially registered and recognized as a legal entity separate from its owners, allowing it to own assets, incur liabilities, and engage in contracts.
An intermediate holding company is a corporate entity that functions as both a holding company for a group of companies and as a subsidiary of a larger parent company. This dual role allows it to qualify for specific exemptions from publishing consolidated financial statements.
A Joint-Stock Company allows members to pool their stock and trade collectively, differing from earlier merchant corporations where trading was done individually while adhering to company rules.
A legal entity refers to a person or organization that has the legal standing to enter into a contract and may be sued for failing to perform as agreed in the contract. A child under legal age is not a legal entity. A corporation is considered a legal entity since it is deemed a person in the eyes of the law.
A Limited Liability Partnership (LLP) combines the benefits of traditional partnerships with limited liability. It provides flexibility in business operation while offering liability protection similar to corporations.
The term 'Officers of a Company' typically refers to the individuals who hold significant managerial or administrative positions within an organization, including Directors and the Company Secretary. These officers play crucial roles in the governance and operational oversight of the company.
An offshore company is a business entity not registered in the same country as that of its funding residents or it's an entity established in a foreign country, often a tax haven, for capitalizing on specific tax laws and exchange control regulations.
A Public Limited Company, abbreviated as PLC or (c.c.c.) in Welsh, is a type of company whose shares are traded freely on a stock exchange and can be bought by the general public. These companies adhere to more complex regulations and scrutiny to ensure transparency and protect investors.
S.A. refers to a corporate structure commonly used in Spanish-speaking and French-speaking countries. It is equivalent to a corporation (Inc.) in the United States or a public limited company (PLC) in the United Kingdom.
A shell corporation is a company that is incorporated but has no significant assets or operations. It may serve legitimate purposes, such as obtaining financing, but can also be used in fraudulent schemes.
A Stock Insurance Company is a type of insurance company that is owned by stockholders. These stockholders receive earnings in the form of shareholder dividends. However, under state laws, the interests of policyholders take precedence over those of stockholders.
A sub-subsidiary refers to a subsidiary undertaking of a company that is itself a subsidiary of another parent company.
A Subchapter S Corporation, commonly referred to as an S Corporation, is a special type of corporate structure recognized under Subchapter S of the Internal Revenue Code. It allows corporations to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes.
An ultimate holding company, also known as an ultimate parent company, is a company that holds a dominating position over a group of firms, including those subsidiaries that act as immediate holding companies for their own subsidiaries.
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.
