Sister companies are subsidiaries that are related to one another by virtue of the fact that they share a common parent entity. Each sister company operates independently from the others, and in most cases, they produce unrelated product lines.

Why is it called a sister company?

A sister company is a company with close affiliations to another company with a separate name and personnel. Both companies are owned by the same parent and are considered subsidiaries of the larger company. See holding company; parent company; subsidiary. ...

What is the legal term for sister company?

A subsidiary, subsidiary company or daughter company is a company owned or controlled by another company, which is called the parent company or holding company. Two subsidiaries that belong to the same parent company are called sister companies.