subsidiary
Word family
- subsidiaritynounC2
Synonym discussion
Sense: noun/1
A subsidiary is a separate legal company that is majority-owned (over 50%) by a parent company, such as a car brand owned by a global automotive group. An affiliate has a looser connection — the parent may own a minority stake or the two companies may share ownership without full control. A branch is not a separate legal entity at all; it is simply an office or location of the same company (e.g., a bank branch in a different city). A division is an internal department or unit within a single company (e.g., the electronics division of a tech firm). Use subsidiary when the legal separation and majority ownership matter; use affiliate for partial ownership; use branch for extra locations of the same firm; use division for internal organisational units.
Common collocations
Etymology
The word comes from Latin 'subsidiarius', meaning 'kept in reserve as support or help', which was used in military contexts for reserve troops. This came from 'subsidium' ('help, aid, reserve troops'), itself formed from 'sub-' ('up from under') and 'sedere' ('to sit'). English took the word via French 'subsidiaire' in the 1500s. The business meaning of 'a company owned by another company' emerged in the early 1900s as corporate structures became more complex.