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Subsidiary or Affiliate - Clarification

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  • Subsidiary or Affiliate - Clarification

    Hi Guys,

    I have a question on what makes a company subsidiary or affiliate of US company. The situation is -

    Company 'A' is based in US. Company 'B' is based in India. Owners of company A and B are totally different, but company 'A' pays out each and every expense for company 'B'. So much so, that even the machines and office premises that Company 'B' uses are paid by Company 'A'. In legal terms, the lease and invoice for machines are paid by Company 'B' but the money to pay for them has been paid by Company 'A'. Company 'A' pays salaries to all the employees of Company 'B' based on invoices raised by Company 'B' at the end of the month.

    Can Company 'B' be considered as subsidiary or affiliate of Company 'A' for L1 visa purposes?

    Thanks in advance.

  • #2
    Company B can be claimed as a legal affiliate of A, if and only if it is registered as such. Merely paying employees' salaries and expenses does not confer such a status.
    Just an opinion; Not legal advice.

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