Indian Subsidiary

• Indian Subsidiary – Our company provide services to International Companies in establishing 100% Indian Subsidiary by obtaining the necessary permission under Foreign Exchange Management Act. Our firm also provides services relating to incorporation of Indian Companies with the Registrar of Companies in India.

• A subsidiary, in business, is a person which is controlled by another person. The controlled person is called a company, Corporation, or Limited Liability Company, and the controlling person is called its parent (or the parent company). The reason for this distinction is that an individual cannot be a subsidiary of any organization, only a person representing a legal fiction as a separate person can be a subsidiary. This is because individuals have the capacity to act on their own initiative; a business entity can only act through its directors, officers and employees.

Reasons why a company may have subsidiaries

The following are common reasons why companies have subsidiaries, but no list can ever be exhaustive.

* Risk: Many businesses use subsidiaries to manage risk. This is achieved usually by setting up a subsidiary corporation to undertake the higher risk venture. If that venture subsequently become subject to litigation or liability, legally the subsidiary corporation would be liable and not the parent (unless the parent made guarantees, in which case the parent is liable for the guarantees it made).

* Acquisition: When one company acquires another, the one acquired becomes a subsidiary of the acquiring company.

* Regulation: Law may require a company to conduct certain activities through a distinct entity. Examples include banking or the operation of utilities such as electricity or telecommunications. As subsidiaries are distinct legal entities, this ensures full disclosure of the financial results of these businesses and insulates them from the other activities of their group.

* Territoriality: A group, particularly a multinational one, may create subsidiaries in many jurisdictions simply to prevent someone else doing so to the confusion of their customers.

* Taxation: Taxation is still largely conducted on national lines. Multinational businesses may therefore establish subsidiaries in each jurisdiction to bring together all their activities in that jurisdiction.