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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 9718
Experience:  30 years of corporate, litigation and international law
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Corporate Structure Im studying how multinational corporations

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Corporate Structure

I'm studying how multinational corporations structure themselves, and I note a pattern. A parent company owns/controls subsidiaries by taking over greater than 50% of the shares of its foreign counterparts. Often the subdiary will have the same name, as in Sony, Sony USA, Sony (other country)....

Is it a valid corporate structure to avoid the multinational corporate template and have the exact same group of 100 shareholders create 5 distinct corporations in 5 different countries? For instance, a group of 100 shareholders create BlueJay USA Corporation, BlueJay France, BlueJay FinLand, BlueJay Canada, and BlueJay Mexico. BlueJay USA sales bird food, while BlueJay Mexico sales bird cages, and Bluejay FinLand provides shipping services worldwide for the BlueJay brand, and BlueJay France is a financial firm and sells Tax, Payroll, and Accounting services to all the companies in the group. BlueJay Canada does some research that it sells to BlueJay USA. They would share no resources other than perhaps all being represented by BlueJay USA's web site at

Is this a valid structure for a group of corporate entities? They operate completely independently from one another and just happen to take no other customers than other BlueJay companies. The unique property here is that the companies have no relation to one another as far as one owning another. They just happen to be run by the same group of shareholders. One can close, split, merge, and/or change ownership and not affect the others financial books at all.

I could not respond in chat so I switched to this format.

That will work however the various companies would be considered affiliates of one another under US corporate law because they are under common control. However, you could do as you indicate in your post.

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