8 Facts About Indian Subsidiary Business

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Foreign Ownership

100% FDI allowed in many sectors under the automatic route in India.

Indian Entity

Indian subsidiaries are treated as domestic companies for tax purposes.

Legal Identity

Has a legal identity distinct from the foreign parent company.

Market Expansion

Ideal for global firms entering India’s large consumer market.

Taxation Advantage

Enjoys domestic tax rates, often lower than branch office taxes.

Indian Directors

At least one Indian-resident director is mandatory.

Repatriation of Profits

Profits can be repatriated to the parent after tax.

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