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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