A multinational can set up subsidiaries to enter international markets while protecting the name of the parent company if the subsidiary is down or if the parent company is not judged positively because of its foreign origin. Understanding the differences between related companies and other enterprise agreements is important to cover debts and other legal obligations. The term “affiliate” has two specific uses in the commercial context: in the banking sector, subsidiary banks are popular when it comes to writing securities and entering foreign markets where other banks do not have direct access. Subsidiaries. Although the European limited company`s guidelines have clearly defined the concept of a company`s subsidiary (and subsidiary), large transaction agreements often provide for a contractual definition. A common definition that corresponds to the definition of the European directive: a subsidiary is generally defined in a financing credit contract and refers to a company other than a subsidiary that directly or indirectly holds control of another company or under the power of another company. The subsidiary refers to an entity more than 50% owned by another entity. As a general rule, the given percentage of voting rights is 5 to 10 per cent or more of the titles for the choice of directors of a company. The affiliation agreement refers to an agreement of terms and conditions between a related company, which is generally an “independent contractor,” and the operator which, in most cases, is a larger entity when the former agrees to market the product or brand of the private enterprise without being a separate legal entity or joint venture. Do you want to create your own custom affiliate agreement? Why visit a lawyer and pay a juicy fee if they can “make themselves”! We`ll be happy to help you LegalDesk.com! People may have told you about becoming “affiliated” with their online business, or maybe you`re an Amazon partner yourself. The term “affiliate” seems confusing, so we will try to clarify the meaning below. Affiliate agreements can be entered into by any type of business, from the individual entrepreneur to the company. Working with another company is a good way to promote your business and make more money by joining someone who has a proven track record and a broader customer base.