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For foreign companies looking to capitalise on the opportunities available in India, establishing a wholly owned subsidiary offers numerous benefits. Among the many options to incorporate a business, the wholly owned subsidiary is one of the most efficient ways for foreign companies to establish legal entity in India.
A wholly owned subsidiary defines a clear regulatory framework where foreign companies get maximum flexibility to conduct business while complying with domestic legal regulations. Additionally, as a wholly owned subsidiary, the business gets to retain 100% of the shareholding.
Stratrich Consulting provides expert guidance on setting up a wholly owned subsidiary in India, making it easy for foreign companies to establish legal presence. The team comprises experienced professionals well-versed in cross-border structuring and regulatory compliance. Our expert guidance assists businesses streamline their incorporation and set up their operations in Indian market.
In India, Wholly Owned Subsidiary can be set up either in the form of Private Limited company or Public Limited company. Of the two, formation of WOS in the form of a Private Limited company is more suitable.
The requirements for establishing a WOS in the form of Private Limited company in India are:
The company’s Charter Documents (Memorandum and Articles of Association) must include:
100% shares of the Wholly Owned Subsidiary must be held by the foreign parent company. For statutory purposes, two shareholders are mandatory:
Establishing a wholly owned subsidiary is a viable option for foreign companies due to the following reasons:
The foreign company has 100% control over the wholly owned Indian subsidiary, giving it the ability to implement strategies without interference.
These subsidiaries are eligible for various tax exemptions and incentives.
Wholly owned subsidiary is easy to handle in terms of finance and operations.
Shareholders are only liable to their shareholding, protecting the assets of the parent company.
Stratrich Consulting specialises in assisting foreign companies and investors enter the Indian market to establish business operations. Our services for setting up a wholly owned subsidiary in India include:
Approx. 15-20 working days
getting incorporation certificate and PAN/TAN
Approx 8-10 Working days
for GST Registration
Approx. 5 working days
in opening bank account
Approx. 25-30 days
in all RBI compliances
A Wholly Owned Subsidiary is a company in which a foreign company holds 100% of the shares. It is a legal entity offering limited liability and full control to the foreign company.
Yes, a Wholly Owned Subsidiary in India allows foreign companies to have 100% ownership.
It takes approximately 15 working days for the complete end-to-end registration of a Wholly Owned Subsidiary.
Subsidiary and wholly-owned subsidiary are two different business structures.
• A subsidiary is a business structure in which the parent company must hold a minimum of 51% of the subsidiary's shares.
• A wholly owned subsidiary is a legal entity in which the parent company owns 100% of the shares.
Some of the common reporting requirements for wholly owned subsidiaries in India include:
Yes. You can register a wholly owned subsidiary at a residential or commercial premises in India. A recent utility bill (not older than two months) and a No Objection Certificate (NOC) from the property owner are required.
Yes, NRIs and foreign nationals can serve as directors and shareholders of a wholly owned subsidiary, provided the subsidiary has at least one resident Indian director.
If the wholly owned subsidiary meets the applicable sales or turnover thresholds, it is required to register under the Goods and Services Tax (GST).
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