WHOLLY OWNED SUBSIDIARY ABROAD/ JOINT VENTURE CO ABROAD
Just as Indian Govt is allowing MNCs/ foreign Cos to come and set up Industrial projects in India, the Govt of India is allowing the Indian Cos Also to set up their own trading/ manufacturing set ups abroad to make their international branding to compete into the international Markets.
WE HAVE HELPED MANY OF OUR CLIENTELE TO OPEN THE WHOLLY OWNED SUBSIDIARY ABROAD/ JOINT VENTURE COS BY PROPER APPROVAL FROM THE GOVT OF INDIA.
ADVANTAGES OF WHOLLY OWNED SUBSIDIARY ABROAD
The process of globalization has totally changed the face of international marketing. The old style of marketing has become obsolete and the modern and the aggressive model has come into being . Just as the Govt. of India is allowing Multinationals to have their own Subsidiaries in India, the Govt. has started giving permission to Indian exporters to set up their own Wholly Owned Subsidiary Abroad. The advantages of opening up a wholly owned subsidiary is manifold and it provides you all the inputs of aggressive international marketing and competition on a robust footing. Some of the advantages are as follows :-
- Direct marketing:- Previously, the exporters used to contact the buyers with samples and pleaded for good price & better payment terms .This placed the exporters at receiving end and the buyers exploited them forcing for credits and finally creating outstandings. But the exporters having their own subsidiaries abroad delivered goods at the door step against cash/cheque .Hence there is no scope of exploitation or outstanding.
- Double profits:- It multiplies your profits on two points, at the point of export and at the point of import.
- One year Realisation time:- In case of wholly owned subsidiary, the Govt. gives one year of realization time unlike six months in case of shipment to buyers.
- Nill outstanding :- There is no question of outstanding in case of Wholly Owned Subsidiary abroad .
- International Presence every time :- A WOS makes you available in the market every time .Hence the buyers always prefer to buy from a party having its legal entity into the market.
- Globalisation of the co. as well as Directors :- You become a Director into the Overseas Company and as such you can draw salary in foreign exchange pay taxes abroad , buy houses /real estates abroad etc.