What does subsidiary mean?
Subsidiary means secondary or less important than the main part of something. It is commonly used as an adjective for a supporting role, product, activity, or organization, as in “a subsidiary aim” or “a subsidiary company.” As a noun, subsidiary most often refers to a business entity owned or controlled by a larger company, though it can also denote a subordinate person, unit, or thing. The word has a formal tone and is especially common in business, legal, and organizational contexts. It is useful because it describes relationships of importance and control without necessarily implying that the secondary element is unimportant. A subsidiary company may operate independently in practice while remaining formally subordinate to the parent company, making the term valuable in discussions of corporate structure, finance, and administration.
Secondary in importance, function, or scope; subordinate to something else.
"The report treats taxation as a subsidiary rather than a central issue."
Formal; especially common in business, legal, academic, and organizational writing.
A company, organization, or other entity controlled by a larger parent company or body; more broadly, a subordinate person, unit, or thing.
"The international subsidiary reported strong growth in its second year."
In business and financial contexts, the noun usually denotes a company owned or controlled by a parent company.
The standard plural of the noun is “subsidiaries.”
"The group has several subsidiaries operating in different markets."
A subsidiary may be a separate business, but its name can still be tucked beneath the larger company’s name—and its impact can be anything but small.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does subsidiary come from?
Subsidiary entered English from French in the late Middle English period, ultimately deriving from Latin subsidiarus, meaning “assisting” or “subordinate.” Latin formed the word from subsidium, a term for aid or support, associated with sub- “under” and sedere “to sit.” The same Latin foundation produced related English words such as subsidy and subsidize, which likewise refer to support given to sustain or assist something.
Related word forms
How subsidiary is actually used
The adjective is formal and commonly appears in business, legal, academic, and organizational contexts. As a noun, it is especially frequent in corporate and financial writing, where it usually denotes a company or division owned or controlled by a parent company.
Easily confused with subsidiary
Both can mean lower in importance or rank, but subsidiary often emphasizes a secondary function or role, while subordinate more directly describes something placed below another in an order of authority.
Subsidiary means secondary or subordinate, whereas subside means to become less intense, active, or widespread.