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A subsidiary and parent company are recognized as legally separate entities. This means tax and debt are paid by the individual organizations, limiting shared liabilities between the companies. Subsidiary companies will have independence from the parent company, and in many cases are individual brands.
Subsidiary companies will be owned by either a parent company or a holding corporation. A wholly owned subsidiary company will be entirely owned by the parent or holding corporation.
How to Set Up an India SubsidiaryGet a Director Identification Number (DIN) online.Get a Digital Signature Certificate (DSC) online.Reserve a business name through the Registrar of Companies.Prepare the Memorandum and Articles of Association.File an incorporation application online.More items...
As noted above, a subsidiary is a separate legal entity for tax, regulation, and liability purposes. Parent companies can benefit from owning subsidiaries because it can enable them to acquire and control companies that manufacture components needed for the production of their goods.
Subsidiary Agreement means the partnership agreement of any Subsidiary that is a limited or general partnership, the limited liability company agreement of any Subsidiary that is a limited liability company, the certificate of incorporation and bylaws or similar organizational documents of any Subsidiary that is a