Parent company

A parent company is a company that owns enough voting power in another firm (or subsidiary) to control management and operations by influencing or electing its board of directors. The definition of a parent company differs from jurisdiction to jurisdiction, with the definition normally being defined by way of laws dealing with companies in that jurisdiction.

When an existing company establishes a new company and keeps majority shares with itself, and invites other companies to buy minority shares, it is called a parent company. A parent company could simply be a company that wholly owns another company, which is then known as a "wholly owned subsidiary".