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Advantages and Disadvantages of a subsidiary company

Posted By admin on December 25, 2013 No Comments

Advantages and Disadvantages of a subsidiary company-

Advantages of a subsidiary company

Advantages of a subsidiary company

  • The holding company provides the subsidiary company with buying power, research and development funds, marketing money and know-how, employees, technical and other features which otherwise it could not afford or accomplish alone.

  • The parent can provide the monetary means and capability to jump start new companies and products.

  • Ability to offset profits and losses of one part of a business with another

  • Liabilities and credit claims are locked in that subsidiary and cannot be passed on to the parent company

  • Allows for joint ventures with other companies with each owning a portion of the new business operation.

Disadvantages of a subsidiary company-

subsidiary company

subsidiary company

  • A major disadvantage of being a subsidiary of a large organization is the limited freedom in management

  • Decision-making can become time-consuming as issues often must go through various chains of command within the parent bureaucracy before any action can be taken.

  • Legal paperwork involved with creating a subsidiary can be lengthy and expensive

  • Control also becomes an issue when a subsidiary is partially owned by another outside organization

 

Are you looking for-

Are you looking for

Are you looking for

 

  • Reliable Company Law consultant in India who is specialised in Forming Subsidiary Company in India or Reliable Income tax consultant in India

  • Do you have any specific query regarding Company Incorporation, Subsidiary Company, Taxation in India. Please email us at ceo@taxworld.in for no obligation

  • Are you looking for Fastest Subsidiary Company Formation in India with the help of purchase of readymade clean company

  • Are you looking for opening Branch Office, Project office in India

 

 

If you answer to any question is Yes, Dont hesitate in email us or calling us at 9818092002

In case you need any further information

Contact us at 9818092002
Email : info@companyindia.co.in

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