2 min read
Definition
A subsidiary company is one controlled by another company, the parent, normally through ownership of more than half its voting shares. It remains a separate legal entity with its own accounts and liabilities.
In plain terms
It's a company owned by another company. Being separate matters: its debts are generally its own, not automatically the parent's.
Why it matters for your company
When a subsidiary borrows, lenders may look to the parent for a guarantee — worth understanding before you sign. See group company borrowing.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.