Wholly owned subsidiary in India

A wholly-owned Indian subsidiary is among the most practical and viable options for foreign entities to establish a company in India. If it is a wholly-owned subsidiary (WOS), the majority of the shares are held by a foreign corporation, referred to as a mother company or holding corporation. It can also be a private limited company or a public limited company, where the owner's or parent's liability is limited to their share in the business. A WOS of a foreign company located in India is subject to the Companies Act 2013 and the Foreign Exchange Management Rules and Regulations issued by central authorities and the Reserve Bank of India (RBI).

Documents Required for a Wholly Owned Subsidiary in India

A list of the documents that must be provided by the director and shareholders All directors and shareholders of the business must submit the following documents: All documents submitted must be readable and valid.

Copy of scannable PAN Card (mandatory for Indian nationals)
Copy of a scannable passport (mandatory for NRIs and foreign nationals)
Copy of scanned Aadhaar card, voter ID, passport, or driving license
Copy of the scannable document Latest Bank Statement/Telephone Bill/Post-paid Mobile Bill/Electricity Bill (the address proof must be up-to-date and not older than two months)
Photograph of passport-size scanned
Corporate Visa or the International Citizen of India (OCI) Card (for individuals who are completing the incorporation process by visiting India)
The document is an apostille of the charter of the foreign company. Foreign company translated into English.
If the company chooses to use its trademark or the original name at the beginning of a new venture in India in the future, the business must provide a NOC from the foreign company to utilize the same as a board resolution.

Registered Office Proof

A private limited company should have an office registered in India. The office address could be commercial or residential. The proof of address should be current and not older than two months. The following is the list of documents that must be submitted in lieu of registered evidence of office address: Copy of the utility bill that has been scanned, such as electricity bills, mobile post-paid bills, or landline Post-paid bills, gas bills, and water bills a scannable copy of a no-objection certificate from the property's owner or whose name appears on such a utility bill.

Features of a Wholly Owned Subsidiary in India

It is possible for a foreign company to incorporate a wholly owned subsidiary (WOS) company with a majority stake (for instance, 99.99 percent of the shares), and the remainder stake is issued to an individual nominated by a foreign entity that will hold the shares in beneficial interest for the company. This is necessary to meet the criteria for a minimum of two (2) shareholders in a private company and seven (7) in the case of a public company. All wholly owned subsidiary (WOS) company shareholders can be foreign nationals. The company must have at least two (two) director members in the form of a wholly owned subsidiary (WOS), of which at least one must be a permanent resident of India. Investments are made by non-residents as well as foreign nationals who invest in capital shares of equity, debentures, or preferred shares from a wholly owned subsidiary (WOS) by using either the automatic route or the government route. The automatic route eliminates the need for the non-resident investor or Indian company to get investment authorization from the Government of India. But on the government route, prior approval from India's government is required. Specific fields or sectors are open to investments that non-residents and foreign nationals can make in a limited manner, but only to the proportion of the total capital as defined by the policy on FDI. However, except for a few, most major sectors in India are available for 100% foreign investment. Investments made by non-residents and foreign nationals need to be reported to the Reserve Bank of India (RBI) according to the rules and regulations of the Foreign Exchange Management Rules and Regulations.

Minimum Requirements for an Indian Wholly Owned Subsidiary

Shareholding of the parent or holding company
Minimum Two Shareholders: A Foreign Company and a Nominee Shareholder
Minimum 2 directors (at least one director must have a residency in India)
The minimum capital required is 2 rupees.
DIN for Directors
DSC for Indian Directors
The business activity is permitted under the Foreign Exchange Management Act and FDI Policy.
Indian office address evidence