Wholly Owned Subsidiary Company/LLP
Instead of having a joint venture company, a foreign company may incorporate its wholly owned subsidiary (‘WOS’) in India, where 100 per cent FDI is permitted.
Foreign companies can set up wholly-owned subsidiary in sectors where 100% foreign direct investment is permitted under the FDI policy. The wholly-owned subsidiary may be either of the following business entities:
- Private Limited Company
- Public Limited Company
- Unlimited Company
- Sole Proprietorship
A 100 per cent subsidiary, incorporated as a private company, is treated as a private company for the purpose of the Act, even though the foreign holding company is a public company under the law of its country.
For registration and incorporation, an application has to be filed with the Registrar of Companies (ROC). Once a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws and regulations as applicable to other domestic Indian companies.
For a foreign Investor in India, it is very important to choose the right kind of business or corporate entity which best suits its purposes and takes care of liability issues and tax planning issues. Foreign Companies planning to do business in India should pay special attention to Entry Strategies in India for Foreign Investors and corporate structuring to save taxes to the best extent allowed by laws and international tax treaties.
Hence, we provide our foreign clients with proper guidance to set-up a Wholly Owned Subsidiary Company in India by following all the required norms being Set up by The Indian Government.