ANY TWO OR MORE PERSONS WHO ARE INTERESTED TO INCORPORATE A SUBSIDIARY COMPANY IN INDIA WHOSE INTERESTS ARE HELD AND CONTROLLED OR HELD BY ANOTHER COMPANY IN FOREIGN HAVE A BEST OPTION TO INCOPORATE AN ENTITY IN THE FORM OF INDIAN SUBSIDIARY COMPANY.
THE SHARE CAPITAL STRUCTURE OF THE SUBSIDIARY COMPANY CAN BE USED TO DETERMINE THE HOLDING COMPANY AND SUBSIDIARY COMPANY RELATIONSHIP.
ADVANTAGES OF INDIAN SUBSIDIARY:
Subsidiary company gets financial support from holding company.
Inflow of funds because holding company subscribed shares of subsidiary company.
Low R&D cost.
Free of cost consultancy or at very cheap price.
No need of taking debt from outside.
Government provide various benefits to this types of companies for promoting trade and commerce between two countries.