What is a sister company mean?

[ticklishdog612]

A sister company is a company with close affiliations to another company with a separate name and personnel. Both companies are owned by the same parent and are considered subsidiaries of the larger company. It is possible for any number of companies to have this kind of relationship.

[blackswan491]

So, companies are also feminine and related companies are called as sister company/ sister concern. This term has come from the navy where ships from the same fleet would be referred to as a sister ship due to the simple fact thats ships are referred to as female object.

Subsequently, question is, how do I start a sister company? How to Create a New Company or Subsidiary of an Existing Company

1. Authorize the formation of a subsidiary.
2. Choose a business entity type for the new company.
3. Draft the companys formation document under state law.
4. File the formation document with the state business registrar.
5. Capitalize the new company.

Beside above, what is the difference between a subsidiary and a sister company?

The difference between a subsidiary and a sister company lies in their relationship to the parent company and to each other. By definition, parent companies own one or more separate corporations, known as subsidiaries. Sister companies are subsidiaries that are related because theyre owned by the same parent company.

Is a sister company an affiliate?

Affiliate. For example, executive officers, directors, large stockholders, subsidiaries, parent entities and sister companies are affiliates of other companies. Two entities may be affiliates if one owns less than a majority of voting stock in the other.