Doesn’t it work like that in capitalistic democracy too? The nation is formed as a liberal democracy, but it specifically allows “subnations”, i.e. corporations

Doesn’t it work like that in capitalistic democracy too? The nation is formed as a liberal democracy, but it specifically allows “subnations”, i.e. corporations, to be run with much more freedom. Almost all of them are run in a very authoritarian way. Some of those corporations are comparable to small nations in size and wealth.