There is no conflict of interest in the system you describe and it is done all of the time. You can create multiple companies to do business with one another and there is no vested interest maximums of ownership. What happens for example is company A will be formed, they will own the patent or copyright on some item. Then they form Company B which they will use to manufacture the item and sell it sometimes to even Company C which will then distribute the product. All of these companies can have the exact same owners and as long as they keep separate bank accounts and separate functions, they are considered separate companies and each has its own function even though it is owned by the same person or persons.
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