What regulations govern the establishment of subsidiaries?

In Arizona, businesses that want to establish a subsidiary must comply with certain regulations that are applicable to all business entities. A subsidiary is a separate legal entity that is owned or controlled by another company—which is known as the parent company. The creation of a subsidiary in Arizona requires the filing of articles of incorporation with the Arizona Corporation Commission. The articles of incorporation should include the name of the new entity, its address, the name and address of the agent (an individual or business responsible for receiving official documents on behalf of the subsidiary), the purpose of the subsidiary, and the number of authorized shares of stock or other interests. The parent company must enter into a Parent-Subsidiary Agreement with the subsidiary to define the ownership and control relationship between the two entities. The agreement should include the name of the subsidiary and its address, the name and address of the agent, and any other provisions relevant to the relationship between the two entities. The subsidiary must also register with the Arizona Secretary of State in order to do business in the state. The registration form includes the name of the business entity, its address, the name and address of the registered agent, and the name and address of the incorporator. Finally, the subsidiary must obtain any business licenses or permits required to operate in Arizona. Depending on the specific nature of the business, this could include an employer identification number, liquor license, sales tax license, or other licenses and permits.

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What regulations govern the establishment of subsidiaries?

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