Financial investment can be done in an overseas joint venture by way of
Answers
One can easily go for financial investment on overseas joint venture by way of wholly owned subsidiary system of investment or joint venture form of investment.
There are certain limits of business that one needs to follow while proceeding for it.
These systems facilitate global form of business in global dimensions outside the country of a person.
For this to happen, he needs to get registered with the laws working within his country and there are certain limits as well as eligibility criteria that one has to pass through.
For example there are certain prescribed limits given to invest in oil sector, or other sectors.
They further need to get registered in manufacturing sector or some other similar sector that they want to invest in, working outside India and to go through the authorized dealer categories at the first place.
The Financial investment can be done in an overseas joint venture by way of overseas Joint Venture or Wholly Owned Subsidiary.
Explanation:
- The overseas Joint Venture is the forming of a foreign company that is registered or incorporated according to the ‘laws and regulations of the host country’ where the Indian company makes a ‘direct investment’.
- The Wholly Owned Subsidiary refers to means a foreign company that is created incorporated or registered according to the ‘laws and regulations’ of the ‘host country’ and their entire capital is held by the ‘Indian company’.
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