An affiliate is a company that is related to another company, usually through ownership or control, but not fully owned.

Simple Meaning:

It is a company connected to another company.

In Business:

A company is called an affiliate when:

One company owns a significant share (but not majority control), or

Both companies are under common ownership.

Example:

If Company A owns 30% of Company B, Company B may be called an affiliate of Company A.

In Marketing:

An affiliate can also mean a person or business that promotes another company’s products and earns commission.

In short, an affiliate is a business that has a relationship or connection with another company.