A subsidiary entity is a legal entity that is controlled by another entity, called the parent company. In other words, a subsidiary is a separate and distinct legal entity from its parent company, but the parent company has the ability to control the subsidiary’s operations, policies, and management.

In terms of its impact on business, a subsidiary can be used by companies to expand their operations and enter new markets, while still maintaining control over the subsidiary’s activities. This can also help limit the parent company’s liability, as any legal issues arising from the subsidiary’s operations would generally be the responsibility of the subsidiary, rather than the parent company.

From a legal perspective, a subsidiary is typically formed as a separate corporation, with its own board of directors, officers, and shareholders. The parent company will usually hold a controlling interest in the subsidiary, often by owning a majority of the subsidiary’s shares.

For more detailed information on subsidiary entities and their legal implications, it is recommended to contact a legal expert such as TD Law Firm.