Definition: Conduit

Category: Foreign direct investment

A conduit is an enterprise that obtains or borrows funds, often from unaffiliated enterprises, and remits those funds to its direct investor or another affiliated enterprise. Some conduits and holding companies may have a substantial physical presence as evidenced by office building, equipment, employees, etc. Others may have (little) or no physical presence and may exist only as shell companies. http://ec.europa.eu/eurostat/ramon/statmanuals/files/Foreign_direct_invest_EN.pdf