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what are Controlled and Affiliated group and what are the differences?

what are Controlled and Affiliated group and what are the differences?

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A controlled group is a group of two or more companies which are connected through stock ownership say, parent-subsidiary group or brother-sister group or combined group.A controlled group is formed only as a result of stock ownership and can be formed for transacting any business among them.

Affiliated groups are groups of companies that must be combined for the purposes of employee benefit plans due to the nature of relationship between the companies say, business relationship, common ownership or management services. Here there need not be stock ownership to form the group. Companies having business relationship and providing management services can form a group for the purpose of employee benefits.

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