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Advantages of Company Registration / Subsidiary company in India

 Advantages of Company Registration / Subsidiary company in India



A foreign subsidiary company is a partially or wholly-owned company that is a part of a larger corporation. The larger corporation must be headquartered in another country. The foreign subsidiary company works according to the laws of the country in which they are located.

We have listed 9 important advantages if your register a foreign company.

  1. Control

Establishing a subsidiary company in India gives the parent company operational and strategic control over the company. This becomes a very vital benefit for the parent company.

  1. Synergies

 Synergies are combining two services together to get a combined or greater effect. Establishing subsidiary companies provide the benefit of synergies where a common financial system is used, sharing the cost incurred between the parent company and subsidiary.

  1. Brand name

The brand name is retained as both the parent company and the subsidiary bear the same name. This leads to better growth opportunities for the business as the identity of the company will be retained.

  1. Limited Liability

Both companies have limited liability.

  1. Trade secrets

Along with control over the operations, the company’s trade secrets, expertise will be protected. A wholly subsidized company can be incorporated in India after looking into all the benefits that come with establishing a subsidized company in India.

  1. The continuous inflow of funds

There is a continuous inflow of funds by the parent company. The cost of debt can be saved by subscribing to new shares to the subsidiary company.

  1. Joint venture

Setting up a foreign subsidiary company makes it easier to establish joint ventures with other companies.

  1. Greater cooperation

The holding and subsidiary companies can use a common financial system, and they can share their administrative and other expenses. This provides them a huge benefit by making things cost-effective.

  1. Global Strategy

It provides protection and security to the company’s trade secrets, expertise, and technical knowledge along with control over the operations.

Note: All documents submitted towards the registration of a foreign subsidiary company must be translated into English

Conclusion

Establishing a foreign subsidiary company in India has a lot of benefits of its own. These companies are regulated by the Companies Act, 2013. All types of businesses are permitted to set up their business in India.

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