Definition: Direct investment enterprise

Category: Balance of payments

Direct investment enterprise is an incorporated or unincorporated enterprise in which a direct investor owns 10 percent or more of the ordinary shares or voting power (for an incorporated enterprise) or the equivalent (for an unincorporated).

Direct investment enterprises or associated enterprises comprise branches enterprises (incorporated enterprises), subsidiaries (incorporated enterprises that are more than 50 percent owned by the director investor), and associates (incorporated enterprises that are between 10 and 50 percent owned by the direct investor).

The direct investment relationship extends to the direct investment enterprises' subsidiaries, subsidiaries, and associates (unless the direct investment enterprises itself is an associate).