It can qualify as a subsidiary if the Canadian parent owns fifty percent and has equal control and veto power over the joint venture. The agreement must document those rights, and both qualifying organizations must remain actively doing business.
Control, not the percentage on the cover page
Where two unrelated companies each hold fifty percent, the documents decide. The L regulation treats an entity as a subsidiary when the parent owns half of a fifty-fifty joint venture and has equal control and veto power over it. A casting vote, board majority or unilateral appointment power is therefore not required if the agreement genuinely preserves equal control and veto rights. This must be documented before the petition is drafted. If the Canadian company lacks those rights, alternatives may include changing the corporate arrangement, using another receiving entity in the group, or choosing a category that does not depend on a qualifying corporate relationship.
The governing condition stays constant while that comparison is made: L-1B requires one continuous year of qualifying employment abroad within the preceding three years with a related entity, and knowledge that is special or advanced rather than merely current.