Wholly Owned Subsidiary in India

1. Wholly Owned Subsidiary in India | Incorporation, Compliance & Setup Support A wholly owned subsidiary in India allows 100% ownership by a single parent company while providing a compliant, onshore vehicle for contracts, hiring, banking, and revenue operations under the Companies Act, 2013. What is a wholly owned subsidiary in India A wholly owned subsidiary in India is a distinct legal entity whose entire share capital is held by a single holding company, typically a foreign parent where sectoral rules permit full FDI. This ensures limited liability, separate legal personality, and centralized decision‑making aligned to the group’s strategy in India.

2. Wholly owned subsidiary of foreign company in India A wholly owned subsidiary of foreign company in India enables the overseas parent to own 100% equity, retaining end‑to‑end control over brand, pricing, IP, and leadership without joint‑venture compromises. The subsidiary may be set up as a private or public limited company while preserving full beneficial ownership by the parent through compliant structuring. Incorporation essentials To register a wholly owned subsidiary in India, founders finalize compliant shareholding, appoint directors, and complete statutory filings to obtain the certificate of incorporation and legal recognition. Once incorporated, the wholly owned subsidiary in India can open bank accounts, hire talent, execute contracts, raise invoices, and comply with ongoing corporate obligations. Shareholding and control In a wholly owned subsidiary in India, 100% shares are held by the holding company, delivering unified strategic and financial control over Indian operations. Statutorily two shareholders must be recorded, typically arranged via compliant structures that maintain the parent’s full beneficial ownership. Company type options A wholly owned subsidiary in India can be formed as a private limited company for tighter control and leaner compliance, or as a public limited company for enhanced governance and future capital plans. Either form maintains complete ownership and alignment with the parent’s governance framework. Funding and deposits A wholly owned subsidiary in India cannot accept public deposits, and member deposits are stringently regulated, steering capitalization to equity or compliant intra‑group instruments. This ensures transparent funding and audit‑ready capitalization for a wholly owned subsidiary of foreign company in India. Governance and compliance A wholly owned subsidiary in India must maintain board processes, statutory registers, annual audits, and periodic filings under the Companies Act, 2013. Related‑party transactions between the subsidiary and the parent should follow

3. arm’s‑length documentation to meet audit and regulatory expectations for a wholly owned subsidiary of foreign company in India. Strategic advantages ● Market access: A wholly owned subsidiary in India enables local contracting, procurement, and hiring, accelerating time‑to‑market and trust with Indian stakeholders. ● Brand and IP: Centralized ownership helps protect trademarks, technology, and processes within a single control framework in India. ● Scale: A wholly owned subsidiary of foreign company in India supports phased expansion, new verticals, and future group consolidation without loss of control. Practical pointers Before forming a wholly owned subsidiary in India, confirm sectoral FDI permissibility and plan capitalization that avoids prohibited deposits while meeting growth needs. Set up the statutory two‑shareholder structure carefully so the wholly owned subsidiary of foreign company in India reflects full beneficial ownership and clean registers from day one. How Stratrich helps Stratrich manages end‑to‑end setup for a wholly owned subsidiary in India—from entity selection and documentation to filings and post‑incorporation compliance. Ongoing governance support helps a wholly owned subsidiary of foreign company in India stay compliant while leadership focuses on execution and growth.