Not only can a sister company insulate your primary business from potential losses, but it also provides many tax benefits, branding reconsiderations or refocuses, and even offers the opportunity to split up effective, or ineffective, management teams.

Put simply, sister companies are subsidiaries (daughter companies) of the same company. The Fox News Channel (Fox News), a US cable and satellite news television channel, has the same parent company (21st Century Fox) as Britain's Sky News – making the two of them sister companies.

Sister concern is another subsidiary owned by the same parent (or mother) company. English has a preference for using female terms when metaphorically speaking of gender neutral entities. Brother concern would mean about the same, although it is not normally used.

If two companies are owned or controlled by the same entity or person (means top management remains the same for both the concerns), they are Sister Companies. Those two companies can exist anywhere in the world.

The advantages of a subsidiary

• Brand recognition. As subsidiaries grow in size, they can establish their brand recognition and increase the overall share of the market.
• Risk reduction.
• Increased efficiencies and diversification.
• Tax benefits.
• Easier mergers and acquisitions.
• Nonprofit benefits.

Sister companies may function entirely independently of one another or may rely on each other for specific functionalities or share common goals. For instance, a multinational grocery store organization may own several grocery brands, each of which functions completely independently from one another.

Sister companies may also often compete with each other in the same market because of how similar their products and services are.

A subsidiary is also sometimes referred to as a “child company”. Wholly-owned subsidiaries are 100% owned by the parent company. A subsidiary can also have controlling interests in its own set of subsidiaries. Sister companies are subsidiary companies owned by the same parent company.

A family limited liability company (LLC) is formed by family members to conduct business in states that allow LLCs. Members must be related by blood, adoption, or marriage.

In broadcasting, sister stations or sister channels are radio or television stations operated by the same company, either by direct ownership or through a management agreement. Radio sister stations will often have different formats, and sometimes one station is on the AM band while another is on the FM band.

What Is a Conglomerate? A conglomerate is a corporation of several different, sometimes unrelated, businesses. In a conglomerate, one company owns a controlling stake in several smaller companies, conducting business separately and independently.

Subsidiaries can be both wholly-owned (100% owned) or not-wholly-owned. A parent company only needs to own more than 50% of another company's stock for that company to be considered a subsidiary.