What is an affiliate company?

Affiliate is a company that is subordinate to a larger parent company, being its branch. A synonym for affiliated company is a subsidiary.

The concept of affiliates

In Russian law, the term "affiliation" appeared in 1995. Affiliated persons are property-related and capable of influencing each other. Among them are members of the board of directors, supervisory board or other management body.

A necessary attribute of an affiliate is the relationship of dependence between the legal entity and the affiliate. They can be property, contractual or related.

Russian law prohibits the transfer of affiliated documents to procurement documents, which ensures transparency of procurement and fair competition.

Sometimes affiliates may be persons who influence the actions of the company, formally and legally without such authority.