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FAR and DFARS › FAR Part 9: Contractor Qualifications › Subpart 9.1

FAR 9.108-1 Definitions.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section defines two terms used in the FAR: 'inverted domestic corporation' and 'subsidiary.' It matters to contractors because these definitions determine how those terms are applied in other parts of the regulation.

Applies to: Contractors and offerors subject to FAR provisions using these terms

Key terms: Inverted domestic corporation · Subsidiary · Parent corporation

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As used in this section—

Inverted domestic corporation means a foreign incorporated entity that meets the definition of an inverted domestic corporation under 6 U.S.C. 395(b), applied in accordance with the rules and definitions of 6 U.S.C. 395(c).

Subsidiary means an entity in which more than 50 percent of the entity is owned—

(1) Directly by a parent corporation; or

(2) Through another subsidiary of a parent corporation.

← 9.108 Prohibition on contracting with inverted domestic corporations. · 9.108-2 Prohibition. →

Rule changes for FAR Part 9

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 9.108-1 Definitions · SpendQuery