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Define A wholly owned subsidiary is a company that is completely owned by another company called the parent company or holding company.Any arrangement whereby two or more parties co-operate in order to run a business or to achieve a commercial objective is termed as Joint ventureA Liaison Office can undertake only liaison activities i.e. it can act as a channel of communication between Head Office aborad and parties in India.Reserve Bank of India has granted general permission to foreign companies to establish this in India , provided they have secured a contract from an Indian company to execute a project in India.Companies incorporate outside India and engaged in manufacturing or trading activities are allowed to setup Branch Offices with specific approval of the Reserve Bank of India (RBI)
Constitution Separate EntitySeparate Entity An extension of the Head OfficeAn extension of the Head OfficeAn extension of the Head Office with right to accrue income in India
Permitted Activities Broader scope Broader scope Limited scope Limited scope Broader scope
Legal Status Separate EntitySeparate EntityRepresents the parent companyExtension of parent companyExtension of parent company
Scope of Activities Broader scope In accordance with Joint Venture Agreement Only liasion activitiesRestricted scopeBroader scope
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