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Home > Services > Start Up Activity > Subsidiary
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A Subsidiary is an independent legal entity, which can hold local employees engaged
in core functions of the parent company such as sales, customer support and research
and development. A Subsidiary can also act as a regional profit center or as an
importer of record if large volumes of goods need to be shipped to clients. Sometimes
even if a company does not need a Subsidiary, its client/s may require one to be
set up before a contract is formally signed.
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An overseas Subsidiary is
a separate legal entity, effectively creating a separation of legal liability between
the parent and its Subsidiary. Depending upon how you structure your foreign Subsidiary
you may need to put in place an agreement between the two companies to determine
how one is remunerated for the work that it undertakes on the other's behalf or
to determine the transfer pricing relationship between the two. Special attention
should be paid to the indirect tax issues arising from these types of agreements.
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Nair & Co. has a dedicated
startup team with the expertise to set up entities in more than 40 countries with
an appropriate benchmarked tax infrastructure. However, if the Subsidiary is no
longer the preferred means of doing business overseas, the closing down process
can be expensive and lengthy. In these scenarios, our dedicated shut down team helps
clients close down defunct foreign entities.
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The Nair & Co. model ensures
your services are delivered directly by our high-qualified staff. Unlike many other
service providers in our space, award-winning Nair & Co. feels it is critical to
execute your needs in-house, instead of acting as a middleman and subcontracting
highly confidential information to third parties. In addition, we are an independent,
self-sustaining service provider with no links to, or investments in us, by sensitive
third-parties such as your bank!
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