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Wholly Owend Subsidiary

VS Legal

Due to a booming economy, India is the preferred destination for investment from NRI’s, Foreign National and foreign companies. India is growing tremendously and hasplenty of business opportunities; India has an investor-friendly climate. If you want to register your Wholly Owned Subsidiary (WOS) then VS IPR & LEGAL ADVISORS will help you in Registration and all the Compliance after Registration.A Foreign Company planning to set up business operation in India may.

  • Incorporate a company under companies Act, 2013 as a joint Venture Or wholly-owned subsidiary (WOS).

  • Set up a liaison office/Representative Office or a Project Office or Branch office of the foreign company as per the requirement.

  • When a foreign company makes 100% FDI in India through an automatic route the Indian company becomes the Wholly An owned subsidiary company of that foreign company.

  • The directors/shareholders visiting India for signing documents must be on a business Visa; otherwise, documents must be legalized/ attested.

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Key Benefits

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1

No minimum paid-up capital required

2

Minimum 2 directors and 2 shareholders

3

Maintenance of effective control over its subsidiaries

4

Section 185 will not attract. There is no restriction on giving a loan or guarantee or security by holding a company to its wholly own Subsidiary(WOS) Company.

5

It is treated as a domestic company under income tax law and is eligible for all exemption, deduction benefits as applicable to any other Indian company.

6

Funding can be made in the form of share capital and loan.

7

WOS can be formed either as a Private Limited or Public Company, however, there is more exemptions available to a private limited company under the Indian Companies Act, 2013 hence most of the Companies prefer to form WOS as a Private limited company.

Registration Benefits of Wholly-Owned Subsidairy

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Easy Formation

India has opened the gate for the Foreign Company to incorporate their subsidiary Company in India, it can be in any form either Private or Public Limited Company.

Group 3

Legal separate entity

A Wholly Owned Subsidiary (WOS) is a legally distinct entity, entirely owned by its parent company, ensuring complete ownership yet maintaining separate legal identity.

Group 3 (1)

Limited Liability

A shareholder’s liability is limited to the unpaid amount on shares held in their name; personal assets remain protected, unlike in sole and proprietorships or partnerships.

Group 3 (2)

Life Span

The company’s existence remains unaffected by death, insolvency, or membership changes; shares can transfer freely without impacting its continuous legal identity.

Documents required

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Group 8 (3)

proof of registered office address

Group 8 (4)

DRIVING LICENCE OR VOTER ID OR PASSPORT

Group 8 (5)

LIST OF SUBSCRIBERS TO THE MOA AND AOA

Group 8

PAN CARD

Group 8 (1)

AADHAR CARD

Group 8 (11)

NOC FORM

Group 8 (7)

2 PHOTOS

Group 8 (12)

BANK STATEMENT AND LIGHT BILL

Group 8 (4)

DRIVING LICENCE OR VOTER ID OR PASSPORT