Relationship types
Commenda supports the following relationship types between entities:| Relationship | Description |
|---|---|
| Parent / Subsidiary | One entity owns or controls another |
| Joint venture | Two or more entities share ownership of a venture |
| Sister company | Entities that share a common parent |
| Affiliate | Entities with a business relationship but not direct ownership |
| Supplier / Customer | Entities with a commercial trading relationship |
| Mergers & Acquisitions | Entities involved in M&A activity |
Setting up relationships
Why corporate structure matters
Defining your corporate structure is important for:- Transfer pricing — intercompany transactions require documentation when entities are related
- Compliance — some jurisdictions have specific filing requirements for parent-subsidiary relationships
- Reporting — Commenda can generate reports that reflect your complete corporate hierarchy