Subsidiary / Limited Company Set Ups

Subsidiary / Limited Company Set Ups

A Subsidiary / Limited Company is an independent legal entity, which can hold local employees engaged in core functions of the parent company such as sales, customer support and research and development. Sometimes even if you don't necessarily require a corporate structure your client/s may require one to be set up before a contract is formally signed.

If you are setting up an overseas subsidiary and depending upon your group structure you may need to put in place an agreement between the two companies to determine how one is remunerated for the work that it undertakes on the other's behalf or to determine the transfer pricing relationship between the two. Special attention should be paid to the indirect tax issues arising from these types of agreements.