Registration Process for Wholly Owned Subsidiary (WOS) in India

Registration Process for Wholly Owned Subsidiary (WOS) in India

A Wholly Owned Subsidiary (WOS) is a company whose shares or voting rights are fully owned by another company, known as the parent company. It differs from a subsidiary because a WOS implies that the parent company owns 100% of the shares or voting rights, while a subsidiary means that the parent company owns 51% or more of the subsidiary company.


Foreign companies can establish a Private Limited Company in India to conduct business or invest, which would be considered a Wholly Owned Subsidiary. However, this is subject to government regulations on Foreign Direct Investment (FDI) and other applicable provisions.

Requirements of Wholly Owned Subsidiaries

  • At least one director who is a resident of India: A Wholly Owned Subsidiary company in India must have at least one director who is a resident of India. The term "resident" refers to an individual director who has resided in India for an equivalent of or more than 182 days in the preceding year.
  • No Minimum Capital: As per MCA guidelines, there is no minimum capital required to form the company.
  • Minimum one shareholder (and nominee) and 2 directors: As per Section 3(1)(b) of the Companies Act, 2013, it is mandatory for every company to have at least one shareholder and one nominee shareholder, along with a minimum of two directors.

How to Form a Wholly Owned Subsidiary in India

Application for Name approval of Wholly Owned Subsidiary – Part A of formation

  • Retain Original Name: The foreign company can choose to retain its original name for the subsidiary in India to carry forward its goodwill.
  • Add India as a Suffix: The foreign company can add India as a suffix to its original name to denote its status as a subsidiary in India.
  • Use Registered Trademark: If the foreign company has a registered trademark in another country, it can use the same trademark for the subsidiary in India.
  • Choose a New Name: The foreign company can also choose a new name for the subsidiary if it desires to do so. 

Read more to know about Wholly Owned Subsidiary Registration in India

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