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SUBSIDIARY COMPANY

Adv. S Sharma (Lawyer) (574 Points)

04 March 2008

Hi guys

plz tell me waht is subsidiary company and how it is different from permannt establishment ?

regards

Sachin

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12 Replies

CA. Kirti S. Ganatra (Service) (1461 Points)
Replied 04 March 2008

No its not diffrent from permanent. It have distinct identity. Just for company Act we have to follow some procedures

Adv. S Sharma (Lawyer) (574 Points)
Replied 04 March 2008

kkk plz ell me on emore thng hows subsidiary is different from wholly own subsidiary ?

Rahul (Company Secretary & Manager-Legal) (216 Points)
Replied 04 March 2008

Subsidiary- when more than 50% of voting rights or nominal capital is held by another co. wholly owned subsidiary: when 100% of nominal share capital is held by another co. (plz Ref. to Sec 4 of Companies Act,1956) share capital here means Equity share capital.

kaushal (w) (545 Points)
Replied 04 March 2008

Sachin go through AS 21 issued by icai
there are many condition
1) 50 cap holding as told by rathindra
2) other condition described in AS 21

PE permenent establishment is realting to foreign company having some bussiness conection in india .Such PE is to be taken care to bring co. under tax brackets
Refer IT ACt for details
there is wide difference between two
i will say they are not at all related to each otherdepending from which angle u see
IT act or accounting

Adv. S Sharma (Lawyer) (574 Points)
Replied 07 March 2008

thx guys

(Guest)

our company with headoffice in hyderabad has established a new unit in US

what is this company called a subsidiary?

(Guest)

Hi... can a holding company acquire whole shares of its subsidiary company, or can one member be showh as the shareholder of a subsidiary company???

Somnath (Article) (20 Points)
Replied 07 July 2008

there should be min 2 members in case of Private Company and in case of public Company, it should be 7 members..therefore it is not possible to hold all of the shares by only one company.Company may hold all of the shares except 1 share should be held by 6 of other persons(in case of public Company).

(Guest)

will holding copmay is liable for all act of subsidiary company

if yes then upto what extent he will be liable

and will holding company is liable for all legal case that will arise on subsidiary company

(Guest)

Originally posted by :Adv. S Sharma
"	Hi guys plz tell me waht is subsidiary company and how it is different from permannt establishment ? regards Sachin	"

lokesh naik (Article) (0 Points)
Replied 03 November 2008

As per companies act, there sholud be at least 2 and 7 members for private and public co respectively. But why some companies are called as 100% subsidiary, which practically does not happen.