関連会社

• Reading: かんれんがいしゃ
• Romaji: kanren gaisha
• Kanji breakdown: 関 (kan) — relate, connect; 連 (ren) — link, series; 会 (kai) — association; 社 (sha) — company
• Pronunciation: /kan.ɾen.ɡai.ɕa/

Meaning

Affiliated company; associated company. A company in which another company holds a significant but non-controlling equity stake, typically between 20% and 50%.

Under Japanese accounting standards, a company is generally treated as a 関連会社 when the investor holds 20–50% of the voting rights and exercises significant influence over management decisions. Distinguished from 子会社 (subsidiary), where the parent holds more than 50%. Transactions between a parent and its 関連会社 must be conducted on arm's-length terms to avoid conflict of interest.

Examples

1. 持株比率が20%以上50%未満の場合、一般的に関連会社として扱われる。 Where the shareholding ratio is 20% or more but less than 50%, the investee is generally treated as an affiliated company.
2. 親会社と関連会社間の取引は、公正な価格条件で行われるべきだ。 Transactions between a parent company and its affiliated companies should be conducted on fair and arm's-length terms.
3. グループの関連会社を整理統合することで、経営効率の改善を図る方針が示された。 A policy of reorganising and consolidating the group's affiliated companies has been announced with the aim of improving management efficiency.

Usage Guide

Context: corporate accounting, company law, financial reporting, group management

Tone: technical

Origin & History

Compound of 関連 (relation, connection) and 会社 (company). The term directly mirrors the English accounting concept of 'associated company' and was standardised as Japanese GAAP aligned with international norms.

Cultural Context

Era: Modern

Generation: Adults

Social background: Business/Finance