Definition of Conduit company:
A holding company formed to avoid paying tax on income to two different countries. If the home nation of a business does not have a tax treaty with the country where a subsidiary is located, the business might be required to pay tax on the same income to both countries. To avoid this situation, a company may set up a holding company in a country that has tax treaties with both nations. This conduit company would serve as a pipeline for income from the subsidiary to the patent company.
Meaning of Conduit company & Conduit company Definition