WHOLLY OWNED SUBSIDIARY
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 has plenty of business opportunities; India has a investor-friendly climate.
If you want to register your Wholly Owned Subsidiary (WOS) than VS IPR & LEGAL ADVISORS will help you in Registration and in 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
- No minimum paid-up capital required
- Minimum 2 directors and 2 shareholders
- Maintenance of effective control over its subsidiaries
- 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.
- 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.
- Funding can be made in the form of share capital and loan.
- 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 SUBSIDIARY COMPANY
India has open 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.
Legal separate entity
Wholly Owned Company (WOS) is an artificial distinct Entity so it is separated by law from its owner.
The liability of the shareholder is limited up to unpaid subscription money in his name and the personal Asset does not get affected by it unlike Sole proprietor or Partnership Firm.
Death and insolvency of any of the members does not affect the continuity of the company. Thus the life of its members does not affect the company. Person can become member or even can leave the organization. Transfer of share can not affect the company.
DOCUMENTS REQUIRED FOR WHOLLY-OWNED SUBSIDIARY