tytäryrityksellä

Tytäryritys is a Finnish term that translates to "subsidiary company" or "daughter company" in English. It refers to a company that is owned or controlled by another, larger company, known as the parent company. The parent company typically holds a majority stake, usually more than 50%, of the subsidiary's voting stock, allowing it to influence or dictate the subsidiary's management and operations.

The establishment of a subsidiary can serve various strategic purposes for a parent company. It might be used to enter new markets, specialize in a particular product or service line, isolate financial risk, or comply with local regulations that require a separate legal entity. Subsidiaries often operate with a degree of autonomy, managing their own day-to-day affairs, but they ultimately answer to the parent company.

The relationship between a parent and its subsidiary is legally defined. While the subsidiary is a distinct legal entity, its financial performance and liabilities can impact the parent company, and vice-versa, depending on the legal and financial structures in place. Consolidation of financial statements is common, where the results of the subsidiary are combined with those of the parent company for reporting purposes. The term "tytäryritys" is widely used in Finnish business and legal contexts.