A Foreign entity which is incorporated outside India can invest and own a company in India, subject to the FDI guidelines, either by mode of acquiring shares of the corporate or by incorporating a fresh wholly owned subsidiary.
A wholly owned subsidiary means a company which by one or more foreign entities is incorporated in India within the provisions of the Indian Companies Act, 2013
Foreign companies can establish their operations in India by forming a wholly Owned Subsidiary in sectors, where under the FDI policy 100% foreign direct investment is permitted. a wholly owned or an Indian subsidiary in comparison with a liaison or branch office has the utmost flexibility to conduct business in India. a wholly owned subsidiary shall have the same footing and be subject to the same rules as apply to the other Indian.
Key features of the wholly owned subsidiary company:
- Companies Act 2013 regulates Wholly Owned subsidiary within the India.
- Different types of business activities are permitted like manufacturing, marketing, etc. and no prior approval of RBI (Reserve Bank of India) is required or needed where 100% FDI (Foreign Direct Investment) is permitted.
- It is treated as Domestic Company under tax law and is eligible for all exemptions, deductions and benefits as applicable to the other Indian Company.
- It can be funded in the form of share capital and Loan.
- Minimum two directors are required for a WOS and in which at least one shall be the resident in India.
- Minimum two shareholders are required, there’s no requirement of any minimum capital for incorporation of WOS in India.
Our services include:
- Filing for name approval via Spice A
- Company formation via Spice+
- Applying for Permanent Account Number (PAN) / tax collection and deduction Account Number (TAN)
- Registration under EPFO
- Registration under ESIC
- GSTIN through AGILE Pro form is optional
- Opening of bank account
- Filing of declaration for commencement of business- INC20A
- Obtaining DSC
- Accounting and booking services
- Trademark registration, if any
- Auditing and assurance services
- Registration, returns and certifications
- Handling representation, assessment and litigations
Documents required for incorporating WOS in India:
For Indian Directors and shareholders:-
- Two Colour Photograph of the proposed shareholder.
- Copy of PAN Card of the proposed Indian Directors.
- Identity proof issued by the Indian government (Passport, Voter card, driving license, Aadhaar Card)
- Address proof issued by the Indian government (Bank Statement, Electricity Bill, telephone bill, Mobile Bill) must not be older than two months
For Foreign Directors and shareholders:-
- Two color Photograph of the proposed shareholder.
- A copy of Passport duly Notarized by the public Notary or Apostilled by the competent authority in the country in which it was issued.
- Identity Proof (Driving License, Residence Card, bank statement, government issued form of identification containing address) Notarized by the public Notary or Apostilled by the competent authority in the country in which it was issued.
- Residential Proof (Bank Statement, Electricity Bill, telephone bill, Mobile Bill) Notarized by the public Notary or Apostilled by the competent authority in the country in which it was issued.
For registered office of the Company:-
- The registered document in the name of the corporate of the title of the premises of the registered office.
- The notarized copy of lease/rent agreement in the name of the company along with a copy of rent paid receipt not older than one month;
- A No objection certificate from the owner of the premises, in case of leased property.