A Foreign Subsidiary is a company that operates in one country but is owned or controlled by a parent company based in another country. This subsidiary functions as a separate legal entity, adhering to the laws and regulations of the country in which it is located. The parent company holds a controlling interest in the subsidiary, allowing it to manage operations, strategy, and decision-making while benefiting from the subsidiary’s local market presence. Establishing a foreign subsidiary enables companies to expand internationally, access new markets, and leverage local resources, while still maintaining overall corporate oversight and control.