moderbolagdotterbolag

Moderbolagdotterbolag is a Swedish term used to describe a second-level subsidiary in a corporate group. It refers to a company that is a subsidiary not of the parent company itself, but of another subsidiary of the same parent. In other words, it is a subsidiary of a subsidiary of the moderbolag (parent company). The term is used to distinguish a group’s deeper layer of ownership from a direct dotterbolag (direct subsidiary).

In practice, moderbolagdotterbolag are part of the group’s organizational structure and are typically controlled by the parent through its intermediate subsidiary. Control is usually established by ownership of voting rights or by other arrangements that enable the group to govern the entity’s financial and operating policies. The concept is important for governance, risk management, and financial reporting within the koncern (corporate group).

Accounting and reporting considerations often require consolidating the financial statements of the parent and all controlled entities, including second-level subsidiaries, in accordance with applicable accounting standards. Intercompany transactions between the parent, its direct subsidiaries, and moderbolagdotterbolag are typically eliminated in consolidated accounts. The existence of second-level subsidiaries can have implications for taxation, regulatory compliance, and liability exposure, depending on jurisdiction and corporate structure.

Example: Moderbolag AB owns Subsidiary A (dotterbolag). Subsidiary A owns Subsidiary B. Subsidiary B is a moderbolagdotterbolag of Moderbolag AB.