Establishment of Subsidiary
A subsidiary is a company with voting stock that is more than 50% controlled by another company, usually referred to as the parent company or the holding company. A subsidiary is partly or completely owned by the parent company, which holds a controlling interest in the subsidiary company. In cases where a parent company owns a foreign subsidiary, the subsidiary must follow the laws of the country where it is incorporated and operates, and the parent company carries the foreign subsidiary’s financials on its consolidated financial statements. The biggest advantage of a Subsidiary company is it’s limited liability. Subsidiary company may engage in any type of activities and also, enjoys a full deductibility of VAT.