Titi, Ada, Lanre and Emmanuel, four bosom friends from highschool decided to join their mind blowing ideas together as they were all considering how to win a fashion competition and launch their own startup. After much deliberation, boom! a company was born – TALE Designers Ltd with TALE being an abbreviation culled from the combination of the first letters of their names. <\/p>\n
As their startup grew, they were considering setting up two subsidiaries – TALE Ateliers Ltd and FitFashion Ltd to meet their business needs of having a makeup studio and a fashion line for children. They now therefore need to know what is required to have these subsidiaries up and running. <\/p>\n
We’ve got them covered!<\/p>\n
A subsidiary company is a company owned and controlled by another company. The owning company usually holds more than half of the shares in the subsidiary company. The owning company is called a parent company or sometimes a holding company. <\/p>\n
For example, the success of TALE Designers Ltd can birth more ideas that will boom out as two companies – TALE Auteliers Ltd and FitFashion Ltd. These companies will be subsidiaries of TALE Designers Ltd. Just like a child, every one of its affairs will be coordinated under the nose of its parent or holding company.<\/p>\n
Where the owning company holds the total shares in a subsidiary, making it the only member of the subsidiary, the subsidiary is said to be a wholly-owned subsidiary. <\/p>\n
A subsidiary is a separate legal business entity that is to be registered with the Corporate Affairs Commission (CAC). The process of registering a subsidiary company in Nigeria must be commenced by a holding company which is required to provide evidence of not less than two subsidiaries. <\/p>\n
It is worthy to note that a subsidiary company cannot be registered where no holding company is in existence and you can only register a subsidiary as a private limited liability company.<\/p>\n
In conclusion, to use the name “Holding” as part of the name of a company which is set up as a holding company, it is important to note that the consent of the Registrar-General of the CAC must be obtained.<\/p>\n","protected":false},"excerpt":{"rendered":"
What you need to Know About a …<\/p>\n","protected":false},"author":1023,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[311,366,362],"tags":[1004,1005,1007,600,1006],"class_list":["post-39570","post","type-post","status-publish","format-standard","hentry","category-choosing-your-business-structure","category-for-startups","category-legal","tag-holding-companies","tag-parent-companies","tag-private-limited-liability-companies","tag-startups","tag-subsidiary-companies"],"yoast_head":"\n