sidusettevõtte

A sidusettevõtte, a term originating from Estonian, translates to "affiliated company" or "subsidiary company" in English. It refers to a business entity that is controlled by another, larger company, known as the parent company. This control is typically established through majority ownership of the subsidiary's shares, allowing the parent company to influence or dictate the subsidiary's management and operations.

The relationship between a parent company and its sidusettevõtte is a common structure in corporate organization. Subsidiaries can be established for various strategic reasons. They might be created to enter new markets, to specialize in a particular product line or service, or to isolate certain risks or liabilities. In some cases, a sidusettevõtte might operate with a degree of autonomy, while in others, it is closely integrated into the parent company's overall business strategy.

From a legal and financial perspective, a sidusettevõtte is a distinct legal entity, meaning it has its own assets, liabilities, and legal standing separate from its parent. However, its financial results are often consolidated into the parent company's financial statements. This structure can offer advantages such as operational efficiency, access to capital, and diversified risk. The specific legal and operational framework of a sidusettevõtte can vary depending on the jurisdiction in which it is established and the nature of its relationship with the parent company.