Subsidiary Vs Joint venture company

This query is : Resolved

Pratibha (Querist)
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26 September 2008 I want to know if a company incorporating a new comapny then whether it should go for incorporation of new subsidiary co. or incorporation of new co. as a Joint venture.
what are the major advantages or disadvantages of subsidiary or joint venture.

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Taxguy

Taxguy (Expert)
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26 September 2008 Subsidiary if you want to control the new company.

JV if you cannot control the otherefore but still want to go with.

There is sea of difference between a Subs and a JV.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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27 September 2008 A subsidiary is one where you will have a majority shareholding and you are in control. In the case of JV it is a partnership with another company to float a new company/firm where you may or may not have control.

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