Back to Home

what are the disadvantages of a subsidiary company?

Advantages and Disadvantages of a subsidiary company

Posted By admin on December 25, 2013 1 Comment

Subsidiary Company in India is wonderful platform for parent company based outside India to start business in India.

As Developed Economies are showing sign of recession like USA and other economy and on the other hands Indian Economy is Fastest Growing Econony and it provides skill force and Indian economy constitutes 18-20% of total labour force of the world

In case you wish to know more the procedure for opening Subsidiary company in India we are specialised firm from last 25 years to helping the clients

For more detail call/whatsapp at 9818092002 or email us at or

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 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 :

Filed under subsidiary company Tagged with Tags: , , , , ,


about sec 25 company Advantage of Company Registrationn Advantage of setting up branch Office in India advantages of a sec 25 compay advantages of sec 25 company applicability of sec 259 on sec25 company applicability of sec 274 on sec25 company applicability of sec 275 on sec25 company Benefits of Company Formation in India can nri invest in section 25 companies? Company Formation Advantage and Disadvantage Company Formation advantages company Registration advantages Company set up benefits in India fdi requirements for sec 25 companies How to file Income tax return by Non Resident Indian How to Setup Branch office in India Listing of Advantages of Filling Taxes in India merits of sec 25 company Please find below the example of some cases where u need to submit positive aspects of a sec 25 company sec25 company's directorship requirements Sec 25 company disadvantage sec 25 company limitation seven key points of a section 25 company whar are the characteristic of a section 25 company? what are the advantages and disadvantages of a partnership firm? What are the benefits of sec 25 company? What are the disadvantage of Section 25 company what are the disadvantages of partnership? what are the fcra requirements for section 25 companies? what are the limitation of Section 25 company WHAT ARE THE MERITS OF SEC 25 COMPANY? what are the negative aspects of section 25 company What are the objective of setting up branch office in India What are the positive aspects of sec 25 company? what do you mean by mutual agency what is ngo? what is partnership deed? what is the difference between npo and trust? what is the difference between section 25 company and society? When We need to file Income tax Return Why NRI need to file Income tax return in India why we Wish to set up Branch office in India