Wholly Owned Subsidiary in India by CompanyFormation

 Establishing a wholly owned subsidiary (WOS) in India is a strategic move for foreign companies seeking to expand their footprint in one of the world's fastest-growing economies. With a business-friendly environment, skilled workforce, and vast market potential, India has become a preferred destination for global investors. CompanyFormation simplifies the process, ensuring legal compliance and hassle-free incorporation.

What is a Wholly Owned Subsidiary in India?

A wholly owned subsidiary is a company incorporated in India in which 100% of the shares are held by a foreign company. This allows the parent company to have complete control over the subsidiary while operating in compliance with Indian regulations under the Companies Act, 2013.

Benefits of Setting Up a Wholly Owned Subsidiary in India

1. Full Ownership & Control – The parent company enjoys 100% control over operations and decision-making.

2. Access to Indian Market – Tap into a growing consumer base and business ecosystem.

3. Separate Legal Identity – Limits liability of the parent company.

4. Tax Advantages – Eligibility for tax benefits and exemptions in certain sectors.

5. Ease of Repatriation – Profits and dividends can be repatriated as per RBI guidelines.

Process of Incorporating a Wholly Owned Subsidiary in India

1. Name Approval – Apply for name reservation via the Ministry of Corporate Affairs (MCA).

2. Digital Signatures (DSC) & Director Identification Number (DIN) – Mandatory for directors.

3. Filing of Incorporation Documents – Submission of SPICe+ form, MOA, and AOA.

4. Foreign Direct Investment (FDI) Compliance – Ensure adherence to RBI and FEMA guidelines.

5. Certificate of Incorporation – Issued by the Registrar of Companies (ROC).

6. Post-Incorporation Compliances – PAN, TAN, GST registration, and bank account opening.

Why Choose CompanyFormation?

• Expert guidance on FDI norms, RBI regulations, and compliance.

• End-to-end assistance from documentation to post-incorporation support.

• Timely and transparent services to ensure smooth market entry.

---

FAQ on Wholly Owned Subsidiary in India

1. Can a foreign company own 100% of a subsidiary in India?

Yes, subject to sector-specific FDI regulations. In most sectors, 100% foreign ownership is allowed under the automatic route.

2. What is the minimum capital requirement for a wholly owned subsidiary in India?

There is no minimum capital requirement unless specified for a particular sector.

3. How long does it take to register a wholly owned subsidiary in India?

Typically, it takes 15-20 working days, depending on document readiness and approvals.

4. What taxes apply to a wholly owned subsidiary?

The subsidiary is treated as an Indian company and is taxed as per the Indian Income Tax Act.

5. Can profits be repatriated to the parent company?

Yes, dividends and profits can be repatriated as per RBI and FEMA guidelines.