A legally independent company that is economically controlled and managed by another company, the parent company.
example
Die bekannte Automarke ist ein Tochterunternehmen eines großen internationalen Konzerns.
The well-known car brand is a subsidiary of a large international corporation.
Usage tips
Compound word
The word is made up of 'Tochter' (daughter) and 'Unternehmen' (company). It is part of a family metaphor: the controlling company is called 'Mutterunternehmen' (parent company) or 'Mutterkonzern' (parent corporation).
EXAMPLE
Das neue Start-up ist ein Tochterunternehmen eines großen Technologiekonzerns.
The new start-up is a subsidiary of a large technology corporation.
Sentence structure with 'von'
To name the controlling company, the preposition 'von' (of/from) followed by the dative is typically used. The structure is: 'ein Tochterunternehmen von [Firma/Konzern]' (a subsidiary of [company/corporation]).
EXAMPLE
Diese Softwarefirma ist ein Tochterunternehmen von einem bekannten amerikanischen Hersteller.
This software company is a subsidiary of a well-known American manufacturer.
Typical verbs
In a business context, 'Tochterunternehmen' (subsidiary) is often combined with verbs such as 'gründen' (to found), 'sein' (to be), or 'übernehmen' (to take over/acquire).
EXAMPLE
Der Konzern plant, im nächsten Jahr ein weiteres Tochterunternehmen in Asien zu gründen.
The corporation plans to found another subsidiary in Asia next year.
Compare with
synonym
Tochterunternehmen vs Tochter
daughter
'die Tochter' and 'das Tochterunternehmen' can mean the same thing in the business world. 'Tochter' is the short form and works well when it is clear that companies are being discussed. 'Tochterunternehmen' is clearer because it immediately shows that no family member is meant. Both words describe a company that is controlled by another company. In official texts or texts where you want to be especially clear, 'Tochterunternehmen' is often the better choice.
Tochterunternehmen
Nach dem Gespräch war klar, dass das Tochterunternehmen weiter wachsen soll.
After the conversation, it was clear that the subsidiary should continue to grow.
Tochter
Die Tochter in der Schweiz übernimmt den Kundenservice.
The subsidiary in Switzerland is taking over customer service.