子会社

• Reading: こがいしゃ
• Romaji: kogaisha
• Kanji breakdown: 子 (ko) — child, subordinate; 会 (kai) — meeting, association; 社 (sha) — company, organisation
• Pronunciation: /ko.ɡai.ɕa/

Meaning

Subsidiary company; a company controlled by a parent corporation (親会社) through majority ownership.

A noun in corporate law and business describing a company in which a parent company (親会社) holds a controlling interest, typically more than 50% of voting shares. 完全子会社 denotes a wholly owned subsidiary (100% ownership). Subsidiaries may be established for tax, regulatory, or operational reasons and maintain separate legal status while operating under the parent's strategic direction.

Examples

1. 同社は海外展開を加速するため、現地に子会社を設立した。 The company established a local subsidiary to accelerate its overseas expansion.
2. この子会社は親会社の完全所有下に置かれている。 This subsidiary is wholly owned by the parent company.
3. 子会社の業績不振が親会社の決算にも悪影響を与えた。 The poor performance of the subsidiary also had a negative impact on the parent company's financial results.

Usage Guide

Context: corporate law, business, M&A, group companies

Tone: neutral

Origin & History

Compound of 子 (ko, child/subordinate) and 会社 (kaisha, company). The parent-child metaphor (親会社/子会社) is a vivid structural analogy used throughout Japanese corporate law and business discourse.

Cultural Context

Era: Modern

Generation: Business professionals

Social background: Business