Division 13) Variable 210301: Number of foreign-controlled enterprises

In country-level business statistics foreign-controlled enterprise shall mean an enterprise resident in the compiling country over which an ultimate controlling institutional unit not resident in the compiling country has control. Enterprises shall mean active enterprises as defined for variable 210101 under A3.

Control shall mean the ability to determine the general policy of an enterprise, for example by choosing appropriate directors, if necessary. In this context, enterprise A is deemed to be controlled by an institutional unit B when B controls, directly or indirectly, more than half of the shareholders’ voting power, or by other means secures the control over A.

Foreign control shall mean that the ultimate controlling institutional unit is resident in a different country from the one where the institutional unit over which it has control is resident.

Branches shall mean local units of foreign enterprises not constituting separate legal entities. They are treated as quasi-corporate enterprises within the meaning of Regulation (EU) No 549/2013 and shall be deemed to be enterprises for the purposes of foreign affiliates statistics.

Ultimate controlling institutional unit of an affiliate shall mean the institutional unit, proceeding up an affiliate’s chain of control, which is not controlled by another institutional unit.

Foreign affiliate shall mean an enterprise resident in the compiling country over which an institutional unit not resident in the compiling country has ultimate control, or an enterprise not resident in the compiling country over which an institutional unit resident in the compiling country has ultimate control.

Country of ultimate control shall mean the country of residence of the ultimate controlling institutional unit, or group of units acting in concert.

Institutional unit and local unit shall each have the same meaning as in Regulation (EEC) No 696/93.

Inward foreign affiliates statistics shall mean statistics describing the activity of foreign affiliates resident in the compiling country.