Business Process Outsourcing Package

A subsidiary is a company that is partly or completely owned by another company (parent company) that holds a controlling interest in the subsidiary. If a parent company owns a foreign subsidiary, the company under which the subsidiary is incorporated must follow the Laws of the country where the subsidiary operates, and the parent company still carries the foreign subsidiary’s financials on its books (consolidated financial statements). For the purposes of liability, taxation and regulation, subsidiaries are distinct legal entities.

When a subsidiary is stablished in a foreign country it is highly recommendable to make use of a Business Process Outsourcing (BPO), which is the contracting of a specific business task. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain their position in the marketplace.