Filial vs. subsidiaria
The Spanish language has various words that refer to a similar meaning, and such is the case with 'filial' and 'subsidiaria'. Both refer to the business model of a subsidiary or daughter company — a company controlled by a parent company. The subtle difference between these words often lies in their usage and connotations.
Filial
In Spanish, 'filial' derives from Latin 'filialis', meaning 'of a son or daughter'. In the business context, it refers to one company that is economically and administratively dependent on another, but maintains its own legal identity.
La filial de la empresa matriz se estableció en Madrid.
(The subsidiary of the parent company was established in Madrid.)
La empresa ABC tiene varias filiales en toda Europa.
(ABC Company has several subsidiaries throughout Europe.)
Subsidiaria
'Subsidiaria', also referring to a subsidiary company and derives from Latin 'subsidiarius', meaning 'reserved or assistance'. It tends to focus on the financial aspect, implying that the parent company materially supports the subsidiary.
La empresa XYZ es una subsidiaria de una corporación más grande de Japón.
(XYZ Company is a subsidiary of a larger corporation based in Japan.)
Esta subsidiaria recibe fondos substanciales de su empresa matriz.
(This subsidiary receives substantial funding from its parent company.)
Summary
'Filial' and 'subsidiaria' both refer to a subsidiary or daughter company. However, 'filial' emphasizes the dependence relationship, whereas 'subsidiaria' implies more of the parent company's financial support.