• A wholly owned subsidiary is a company whose ordinary shares are 100% owned by the parent company.
  • Wholly owned subsidiaries allow the parent company to diversify, manage and possibly mitigate its risks.
  • Unlike other subsidiaries, a wholly owned subsidiary has no obligations to minority shareholders.
  • Generally, wholly owned subsidiaries retain legal control over operations, products and processes.
  • The financial results of a wholly owned subsidiary are reflected in the consolidated financial statements of the parent company.