Indian Subsidiary Company
It's a common strategy for foreign companies to expand their operations into the Indian market
Types of Indian Subsidiaries:
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Wholly Owned Subsidiary (WOS):
- The parent company holds 100% of the subsidiary's shares.
- Offers complete control over operations and finances.
- Ideal for businesses aiming for full ownership and operational autonomy.
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Joint Venture Subsidiary:
- The parent company holds a majority stake (more than 50%) in the subsidiary, while the remaining shares are held by Indian partners.
- Allows for strategic partnerships and access to local expertise.
- Suitable for businesses seeking to collaborate with local partners and share risks.
Key Advantages of Setting Up an Indian Subsidiary:
- Limited Liability: Protects the parent company's assets from liabilities incurred by the subsidiary.
- Tax Benefits: Can avail of various tax incentives and benefits offered by the Indian government.
- Stronger Brand Presence: Establishes a local presence and builds brand recognition.
- Operational Flexibility: Enables independent operations and decision-making.
- Compliance with Indian Laws: Ensures adherence to local regulations and standards.
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