We care and recognize how legal control over operations, products and processes are important

We care and recognize how legal control over operations, products and processes are important

Register a Wholly Owned Subsidiary in India with Professional Support

Registering a Wholly Owned Subsidiary is quick, easy, and can be done online with Numbro in 3 simple steps:

We get the legal path cleared and will ensure the reporting and compliance Mechanism is done

We get the legal path cleared and will ensure the reporting and compliance Mechanism is done

Obtain all the required approvals, prepare a compliance chart which are applicable under various acts monitor the applicable laws and report to the concerned statutory

Obtain all the required approvals, prepare a compliance chart which are applicable under various acts monitor the applicable laws and report to the concerned statutory

Why Wholly Owned Subsidiary in India?

“If you have researched the Indian market and want to set up a permanent establishment, you can register a Wholly Owned Subsidiary (WOS) in India. It is one of the strategic ways to operate business in India.
A WOS is fully owned by the parent company, which means the parent holds 100% of the subsidiary’s shares. This provides complete control over the subsidiary, including the appointment of its board of directors. A Wholly Owned Subsidiary can operate in the same industry as its parent company or in a different sector.”

    FAQ's

    What is a Wholly Owned Subsidiary?

    A Wholly Owned Subsidiary company is an entity in which a foreign company has made 100% FDI (Foreign Direct Investment) by way of an automatic route. For example, if XYZ Inc. Canada owns 100% shares in ABC Pvt. Ltd., then ABC Pvt. Ltd. becomes the wholly owned subsidiary company of XYZ Inc. Canada.

    A wholly owned subsidiary company is treated as Indian Company under the Income Tax Act. It is also eligible for all benefits, exemptions and deductions that are applicable to any other Indian Company.

    Who can set up a Wholly Owned Subsidiary?

    A foreign company can set up a wholly owned subsidiary company in India. This can be done by acquiring entire i.e. 100% shares of the subsidiary company. A foreign company can set up its operations in India only in areas where 100% FDI is permitted under the automatic route.

    What are the prerequisites to open a wholly owned subsidiary in India?

    Prerequisites to set up a wholly owned subsidiary in India are as follows:

    • (need to check)Minimum two shareholders are required in order to incorporate a company.
    • Minimum two directors are required, one of whom must be an Indian resident. It is mandatory that all the directors must possess DIN (Director Identification Number).

    All the directors must acquire DSC (Digital Signature Certificate).

    What are the key features of the wholly owned subsidiary company in India?

    Some of the key features of the wholly owned subsidiary company are:

    • A wholly owned subsidiary company in India is regulated by the provisions of Companies Act.
    • A wholly owned subsidiary company in India is permitted to undertake all sorts of business activities in India such as manufacturing, marketing, service industry, etc.
    • A wholly owned subsidiary company does not need a prior approval of Reserve Bank of India if it is already approved of 100% Foreign Direct Investment (FDI).
    • A wholly owned subsidiary company in India is treated as an Indian company under Income tax laws. Moreover, it is eligible for all the benefits, exemptions and deduction as applicable to any other Indian company.
    • The funding of a wholly owned subsidiary company in India can be made in the form of loan and share capital.

    Disclaimer: We are a private consultancy firm providing advisory and application support services related to business registration and compliance. We are not a government agency and we do not issue or provide government documents or certificates.