Today I’m going to take you through the process of creating a subsidiary company and the potential benefits of setting up a subsidiary company.
You will need the base Capitalism Lab game and the Capitalism Lab Subsidiary DLC to run a subsidiary company. You can find out more in our Capitalism Lab Subsidiary DLC article.
How do you create a subsidiary company in Capitalism Lab?
Follow this nine-step process to create a subsidiary company in Capitalism Lab.
- Open the stock market screen fourth icon down on the left-hand side menu. The icon looks like a screen displaying a line chart.
- Select financial action, which is at the bottom of the options menu.
- Enter the company details and set the initial capital for the new subsidiary.
- Select set up a new subsidiary now button to create your new subsidiary company.
- A message will pop up advising that you will need to appoint a new CEO, click ok on the prompt.
- Select the character you want to hire as CEO and click the hire Chief Executive Officer button
- He will request a wage if you are happy select yes otherwise, select no and go through the process of selecting a CEO
- The game will advise you that a new subsidiary has been created.
I recommend that you spend some time specifying how you want the CEO to run the company for you.
You can also create a subsidiary company whenever you own a large percentage of shares in another company.
What are the benefits of a subsidiary company in Capitalism Lab?
It can be helpful to start up a subsidiary company to manage profitable businesses that you either purchase or own that you consider being outside your core markets. You can transfer the business over to a subsidiary company at any time.
I have occasionally used this strategy if I have taken over a competitor. I keep the core businesses for my company strategy and transfer control of the other businesses to my subsidiary company.
The business contributes to my subsidiary company’s profits, and the parent company I manage receives a share of the profits via dividends.
Conclusion
In this article, I have shown you how to set up a subsidiary company in Capitalism Lab and discussed the benefits of setting up a subsidiary company.
May I recommend our guides on creating goods to sell in our guide to manufacturing in Capitalism Lab.