There are several benefits that a subsidiary company have, and they include:
- Flexibility: this implies that a subsidiary company will not have to operate under the parent company and thus will choose the range of products it deals in on its own.
- Separate entity: It can sue, be sued, and the parent company is not held liable for any debts that the subsidiary company runs into.
- Taxation: since it is incorporated in Hong Kong as a private company it will enjoy the normal lower corporate tax rate of 16.5%.
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