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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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Subsidiary Company Formation in India

Posted By admin on December 25, 2013 No Comments

We are Subsidiary Company formation consultant helping foreign client to form subsidiary company in India We are available at companyestart@gmail.com or whatsapp at 9818092002

Foreign companies can set up wholly-owned subsidiary in sectors where 100% foreign direct investment is permitted under the FDI policy. The wholly-owned subsidiary may be either of the following business entities:

  • Private Limited Company
  • Public Limited Company
  • Unlimited Company
  • Sole Proprietorship

Foreign Companies can also set up their operations in India through the business entities:

  • Liaison Office/Representative Office
  • Project Office
  • Branch Office

Such offices can undertake any permitted activities. Companies have to register themselves with Registrar of Companies (ROC) within 30 days of setting up a place of business in India.

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

It is vital to choose the right kind of business consultant who have expertise in starting a subsidiary company in India which best suits its purposes and takes care of liability issues and tax planning issues. Weare  having years of professional experience in providing assistance to Foreign Direct Investors can help you to starting or setting up your subsidiary company in India.

Foreign direct investors who are planning in setting up a subsidiary company or office in India are required to seek approvals from Government of India before investing in India. Our expert team can help in getting those approvals and perform those much need liasions and paper work in limited period of time.

We help in following aspects

Opening  subsidiary company hassle free in India. We also explain the different type of legal entity

Available like Branch office or Liaison office

Every company need to have two Director. Every Director need to obtain Unique Director Identification No called as DIN

 

Also explain the difference between branch office and Liasion office

 

 

In case you need any further information

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

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ABOUT SUBSIDIARY COMPANY

Posted By admin on December 25, 2013 No Comments

As per Indian Companies Act, 1956, a company shall, subject to the provisions of section 4(3), be deemed to be a subsidiary of another if, but only if,-

(a) that other controls the composition of its Board of directors; or

(b) that other-

(i) where the first-mentioned company is an existing company in respect of which the holders of preference shares issued before the commencement of this Act have the same voting rights in all respects as the holders of equity shares, exercises or controls more than half of the total voting power of such company;

(ii) where the first-mentioned company is any other company, holds more than half in nominal value of its equity share capital; or

(c) the first-mentioned company is a subsidiary of any company which is that other’s subsidiary.

Illustration

Company B is a subsidiary of Company A, and Company C is a subsidiary of Company B. Company C is a subsidiary of Company A, by virtue of clause (c) above. If Company D is a subsidiary of Company C, Company D will be a subsidiary of Company B and consequently also of Company A, by virtue of clause (c) above; and so on.

In case you need any further information

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

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