Holding and subsidiary co.


17 May 2012 What are the benefits to create holding subsidiary relationship?
If we want to incorporate three companies then which option will be better from income tax and funds point of view
(i) making holding & subsidiary relationship.
(ii) making independent companies.

18 May 2012 from income tax point of view, no special benefit will be there as all the companies will have to pay Income tax seperately. from fund point of view, holding subsidaiary relationship will be beneficial if case when subsidiary company dont get finance from outside source, then fund can be transfered from holding co to subsidiary co and vice-versa.


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