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Affiliate – what is it?


An affiliate is an institution that provides some kind of service to an association in exchange for compensation. Cooperation between an association and an affiliate can be carried out on many levels and is intended to strengthen both parties.

What is an affiliate? Definition of the term

An affiliate, is an institution that works in cooperation with an association, such as a foundation. It is often an individual who provides some service to the association, such as bookkeeping, website administrator, etc. In return, he or she receives a salary. An affiliate can also be an institution, such as a company, which supports the association financially or otherwise. An affiliate is a legal solution that allows the pooling of forces and resources in cooperation between institutions. This cooperation can be carried out on many levels, such as joint projects, economic cooperation, or scientific cooperation.

How does an affiliated unit work?

Associateunits can be used by large organizations to fund research or investment projects that may be too risky for the main company. Affiliates can also be used to conduct business in other countries where the main company cannot operate due to legislation.

Affiliate – legal aspects

An affiliate is a business entity that joins with another business entity to jointly conduct business. Joint conduct of business means that the affiliated entities share a common economic goal and use their resources to achieve that goal.

Affiliates may be combined by agreement or by law. The agreement between the affiliated units specifies how they will cooperate, as well as what their rights and obligations are. The Law specifies the legal basis for the merger of affiliates and what their rights and obligations are.

Affiliates can be merged under such structures as companies, foundations, associations, committees and others. Merging affiliates can have various purposes, such as protecting the interests of affiliates, increasing the efficiency of operations, or facilitating communication and cooperation between affiliates.

Affiliated units have certain restrictions on their freedom of action. They are required to conduct their activities in accordance with their purpose, and must act in the interests of all affiliated units. In addition, affiliates are required to comply with the law and obligations under the agreement or law under which they were established.


Affiliates may be dissolved under the same procedures that apply to other business units. This may include, for example, termination of the contract or repeal of the law. Affiliates may also be dissolved through an inter-affiliate settlement.

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