What is 100% owned affiliate?

A 100% owned affiliate refers to a business or subsidiary that is wholly owned by another company. In this context, the parent company owns all of the outstanding shares of the affiliate, giving it full control and ownership. The term "affiliate" is used to describe a company that is connected to another company through some form of ownership or control, and in this case, the ownership is complete or 100%.

This level of ownership provides the parent company with the ability to make all major decisions regarding the affiliate's operations, management, and strategic direction. The parent company has the authority to appoint the affiliate's board of directors, influence its business decisions, and consolidate its financial results with its own for reporting purposes.

Having a 100% owned affiliate is common in various business structures, including multinational corporations that may establish subsidiaries in different countries. It allows the parent company to have a high degree of control over the operations of the affiliate, facilitating centralized management and strategic alignment. This type of ownership structure can also simplify decision-making processes and ensure consistency in business practices across the affiliated entities.