Foreign ownership

Foreign ownership refers to the complete or majority ownership/control of a business or resource in a country by individuals who are not citizens of that country, or by companies whose headquarters are not in that country.

In general, foreign ownership happens when multinational corporations, which are companies that conduct economic activities in more than one countries, inject long-term investments in a foreign country, usually in the form of foreign direct investment or acquisition.

If a multinational corporation acquires half or more than half of a company, the multinational corporation becomes a holding company and the company receiving the foreign investment becomes a subsidiary. Also, foreign ownership can happen when a domestic property is acquired by a foreign individual. For example, an Indian businessman purchasing a house in Hong Kong.

Definition

Foreign ownership is the state of being owned by a person or company from another country.

Assessing Foreign Ownership of Companies