A subsidiary, or DP, is a company whose sole founder is another organization. In other words, the subsidiary is not a branch of the parent company, although it is entirely dependent on and subordinate to the founder.
DP is a full-fledged legal entity, and therefore an independent taxpayer. A parent company can only be called a holding company when it has a controlling stake in the subsidiary. Both companies have organizational and economic responsibilities.
The parent company (together with reports on its business operations) provides consolidated financial statements.
It also determines the charter of a subsidiary, gives it the right to use the property, a number of powers, functions. So, it has its own bank accounts, a seal and a separate balance. It concludes contracts itself and is responsible for fulfilling the obligations specified there.
There are two types of dependence of a subsidiary on the main one:
A controlling stake is concentrated in the hands of the main organization, it participates in meetings and other governing bodies, authorized capital. This type of relationship is possible if there is a permission from the Antimonopoly Committee.
In order to register a subsidiary the founding company must submit documents to the government registrar, including a duly completed application for permission to register the subsidiary.
All issues related to the creation, termination of activities, liquidation of a subsidiary, as well as the approval of its charter, are in the competence of the supreme bodies of the parent company.
The process of registering a subsidiary follows the same principles as when creating any other legal entity.
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