Wholly Owned Subsidiary (Private Limited Company)

Incorporate a wholly owned subsidiary in India with 100% foreign ownership, compliance support, tax registrations, and business setup.

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Expanding into India is a major opportunity for global businesses, and the most preferred structure for international companies is a Wholly Owned Subsidiary (WOS) Private Limited Company. It allows foreign investors to own 100% of the shares while enjoying limited liability, credibility with stakeholders, and access to India’s fast-growing market. At India BizSetup, we specialize in helping overseas businesses establish their subsidiaries in India quickly, efficiently, and fully compliant with Indian laws.

A Wholly Owned Subsidiary is governed by the Companies Act, 2013 and can be incorporated under the automatic route of the Foreign Direct Investment (FDI) policy in most sectors. This structure is highly flexible and provides complete foreign ownership, easy repatriation of profits, and recognition as a local Indian entity—giving you the best of both worlds. However, the incorporation process involves multiple regulatory filings with the Registrar of Companies (ROC)/Ministry of Corporate Affairs (MCA), RBI / FEMA compliances, and post-registration obligations.

India BizSetup simplifies this journey by providing end-to-end subsidiary setup services. From advisory on capital structure and FDI routes to preparing incorporation documents, obtaining DIN/DSC, filing MoA/AoA, and coordinating with ROC, we handle everything for you. Beyond incorporation, we also take care of tax registrations, bank account setup, HR/payroll support, and compliance management—ensuring your subsidiary operates smoothly from day one.

IndiaBizsetup exclusive focus on international clients makes us the ideal partner for your India entry. We understand global corporate practices, cross-border challenges, and investor requirements, and we align them with India’s local laws. With India BizSetup, you can establish your Wholly Owned Subsidiary with confidence, compliance, and complete control.

FDI Route Advisory
Guidance on automatic vs. approval routes for foreign investment
Incorporation Filings
DIN/DSC, name approval, MoA/AoA drafting, and ROC registration
Tax & Regulatory Registrations
PAN, TAN, GST, PF, ESI, and professional tax compliance
Bank Account Setup
Assistance with opening corporate bank accounts in India
Post-Incorporation Compliance
Board meetings, filings, and statutory records
End-to-End Business Support
HR, payroll, accounting, and legal services for smooth operations

If you want to register a subsidiary in India, IndiaBizSetup provides end-to-end support from planning to incorporation. Whether your goal is subsidiary setup in India for operations, compliance, and hiring, or you want to setup foreign company in India quickly under the right structure, our team guides you at every step. We help you form a foreign owned subsidiary in India with complete clarity on documentation, approvals, and ongoing compliances. If you’re specifically looking for foreign WOS setup in India, we simplify the process so you can Register a Wholly Owned Subsidiary smoothly and start operating with confidence.

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WOS structure, and key basics

Wholly Owned Subsidiary Setup India: General FAQs

Can a foreign company own 100% of an Indian subsidiary?
Yes. In most sectors under the automatic FDI route, a foreign company can own 100% shares of an Indian subsidiary.
How long does it take to set up a wholly owned subsidiary in India?
Typically, incorporation takes 15–20 working days, depending on documentation, approvals, and sector-specific compliance requirements.
What are the minimum requirements to incorporate a subsidiary?
You need at least two directors (one must be an Indian resident) and two shareholders. A corporate entity can be a shareholder.
What are the key benefits of setting up a WOS in India?
It allows complete ownership, limited liability, credibility with stakeholders, profit repatriation, and easier market entry compared to liaison or branch offices.
Who can register, ownership rules, and directors

Eligibility for Wholly Owned Subsidiary in India: FAQs

Who can setup a wholly owned subsidiary in India?
A wholly owned subsidiary (WOS) can generally be set up in India by foreign companies and multinational corporations. In certain cases, overseas LLPs may also establish a WOS where the FDI rules permit. NRIs and foreign nationals can participate as well, provided the proposed activity meets the applicable FDI policy, sector eligibility, and related conditions.
Can a WOS have Indian directors?
Yes. As per Indian company law, at least one director must be a resident in India.
Can an individual own a WOS?
No. In practice, a wholly owned subsidiary means ownership by a corporate parent (company/body corporate), not a single individual.
Companies Act, FDI policy, RBI & FEMA compliance

WOS in India: Legal & RBI/FEMA FAQs

Under which law is a WOS registered?
A wholly owned subsidiary (WOS) is incorporated in India under the Companies Act, 2013. After incorporation, it is primarily regulated by the Ministry of Corporate Affairs (MCA) for company law compliance, by the RBI and FEMA framework for foreign investment and related reporting, and by the Income Tax Act for taxation, returns, and statutory filings.
Does a WOS require RBI approval?
Not usually. If your activity falls under the FDI automatic route, RBI approval is not required. Approval may be needed for restricted/prohibited sectors or specific conditions.
What sectors allow WOS in India?
Many business activities permit a wholly owned subsidiary (WOS) in India under the automatic route, including IT and software services, manufacturing, consultancy and professional services, and B2B trading. A WOS is also commonly used for e-commerce marketplace models, provided it operates as a marketplace and not as an inventory-based e-commerce business.
Step-by-step incorporation, documents, and timeline

Register a Subsidiary in India: Process FAQs

How to register a subsidiary company in India?
The registration process typically starts with obtaining a Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the proposed directors. After that, the company name is applied for approval, followed by drafting the MOA and AOA. Once the documents are ready, the incorporation forms are filed with the MCA, and after incorporation, the company proceeds to obtain PAN and TAN and complete the bank account opening formalities.
How long does it take to setup foreign company in India?
On average, setting up a foreign company in India takes 10–15 working days, depending on document readiness and government processing.
What documents are required for setting up wholly owned subsidiary?
To set up a wholly owned subsidiary, you’ll usually need the parent company’s Certificate of Incorporation along with a Board Resolution authorizing the investment and incorporation in India. You will also need passport and address proofs of the proposed directors and shareholders, as well as valid registered office address proof in India for the subsidiary.
Paid-up capital, FDI infusion, and reporting needs

Minimum Capital for Foreign WOS Company: FAQs

What is the minimum capital required for a foreign WOS company?
There is no minimum paid-up capital mandated under Indian company law. Capital can be planned based on your business model and operational needs.
Can capital be brought from outside India?
Yes. Funds can be infused as FDI, following FEMA rules and required reporting.
Is FEMA compliance mandatory?
Yes. A WOS must follow FEMA compliance, including foreign investment reporting through prescribed RBI filings/forms.
Corporate tax, GST, ROC filings, and annual compliances

WOS Taxation & Compliance in India: FAQs

How is a WOS taxed in India?
A WOS is taxed as an Indian company at applicable corporate tax rates, along with surcharge and cess as applicable.
Does a wholly owned subsidiary need GST registration?
GST registration may be required for a wholly owned subsidiary if your turnover crosses the applicable threshold, if you make interstate supplies, or if you sell through an e-commerce platform. In addition, certain business activities are required to obtain GST registration mandatorily, even if turnover is below the threshold, depending on the nature of operations and regulatory requirements.
What are the annual compliance requirements?
Key annual compliances for a wholly owned subsidiary typically include ROC/MCA annual filings, filing the income tax return, and submitting GST returns where GST is applicable. Directors must also complete their KYC requirements each year, and the company must maintain FEMA/RBI compliance, including any required filings related to foreign investment and reporting.
WOS meaning, eligibility & setup in India

FAQs About Wholly Owned Subsidiary (WOS)

What is a wholly owned subsidiary?
A wholly owned subsidiary (WOS) is a company where 100% shareholding is held by one parent company (usually a foreign entity). In India, it is typically incorporated as a Private Limited Company and operates under Indian laws.
Is a wholly owned subsidiary allowed in India?
Yes. India permits 100% foreign direct investment (FDI) in many sectors under the automatic route, which allows foreign companies to set up a subsidiary in India without prior approval (subject to sector rules).
What is the meaning of WOS in India?
In India, WOS usually means a Private Limited Company registered under the Companies Act, 2013, where the entire share capital is owned by a foreign parent company.
Is a WOS a separate legal entity?
Yes. A WOS is legally independent from its parent company. It has its own assets, liabilities, contracts, and compliance requirements.
Benefits, risks & compliance overview

Benefits & Limitations of Wholly Owned Subsidiary in India (WOS FAQs)

What are the advantages of a WOS?
A wholly owned subsidiary offers key advantages such as 100% ownership and full control for the foreign parent company, along with limited liability protection. Since it is incorporated as a Private Limited Company, it also provides stronger credibility with customers, banks, and vendors. Overall, this structure supports better long-term scalability and helps build a stable market presence in
What are the disadvantages of a WOS?
Some potential drawbacks of a wholly owned subsidiary include higher ongoing compliance and filing costs compared to simpler structures. It also involves stricter regulatory reporting, particularly under FEMA for foreign investment-related compliances. In addition, a WOS typically requires statutory audits and more detailed documentation and record-keeping.
Compare structures to choose right option

Wholly Owned Subsidiary (WOS) vs Branch vs LLP India

Wholly owned subsidiary vs branch office – which is better?
A wholly owned subsidiary provides limited liability and more flexibility for operations. A branch office is closely tied to the parent entity and may have restrictions depending on permitted activities.
Wholly owned subsidiary vs LLP – what is the difference?
A WOS is a company structure (Private Limited Company). An LLP is a different entity type and can have FDI restrictions in certain sectors, especially around ownership/conditions.
Fees, timeline & IndiaBizSetup support

(WOS) Wholly Owned Subsidiary Registration Cost India

What is the cost of registering a wholly owned subsidiary in India?
The overall cost of registering a wholly owned subsidiary in India depends on the number of directors and shareholders involved, the proposed capital structure, and the applicable government and professional charges. IndiaBizSetup follows a transparent, all-inclusive pricing approach so you get clarity on expenses upfront.
Does IndiaBizSetup provide end-to-end support?
Yes. IndiaBizSetup supports you across incorporation, compliance, taxation, and advisory—under one platform.
FDI rules, FEMA compliance & repatriation

(Wholly Owned Subsidiary) WOS India FDI & Profit FAQs

Yes, if the activity is allowed under the FDI policy and meets sector eligibility and conditions.
The cost of registering a wholly owned subsidiary in India varies based on factors such as the number of directors and shareholders, the proposed capital structure, and the applicable government and professional fees. IndiaBizSetup provides transparent, all-inclusive pricing so you know the expected cost upfront without hidden charges.
Is a WOS the same as FDI?
No. FDI is the investment route. A wholly owned subsidiary is the business structure created in India.
Can profits be repatriated to the parent company?
Yes. Profits can be repatriated after applicable tax payments and compliance requirements are met.
helping you register a wholly owned subsidiary and manage a foreign owned subsidiary in India

Ready to Start Your India Expansion?

If you’re considering a subsidiary setup in India, the smartest move is to get the structure, paperwork, and compliance plan right at the start. When everything is organised from day one, you avoid back-and-forth queries, reduce timelines, and control costs.

A foreign owned subsidiary in India is a strong option for companies that want full ownership, better operational freedom, and long-term scalability. It also helps you build trust with Indian clients, vendors, and banks because your entity is registered locally and follows Indian regulations.

The FAQs above are shared to keep the entire process transparent—what’s allowed under FDI, what RBI/FEMA reporting may apply, what documents are needed, how registration works, and what ongoing compliances you must maintain after incorporation. If you want expert support to execute all of this smoothly, IndiaBizSetup can help you Register a Wholly Owned Subsidiary without confusion or hidden steps.

If you’re evaluating different routes to setup a foreign company in India, there are multiple structures to choose from depending on your business goals. Besides forming a Wholly Owned Subsidiary (Private Limited Company), many companies explore a Joint Venture with an Indian Partner or opt for a Limited Liability Partnership (LLP) where suitable. For a lighter presence focused on coordination and relationship-building, a Liaison Office (LO) may be more appropriate. If you want to operate in India through the parent entity for permitted activities, you can consider a Branch Office (BO) or a Project Office. And for businesses planning production or large-scale operations, Industrial Setup in India helps align licensing, approvals, and infrastructure needs from the start.

Foreign WOS setup in India in India with Us!

Get complete assistance for foreign WOS setup in India—incorporation, ongoing compliance, and business operations support under one roof.

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Noida Office: BizSetups Consulting Private Ltd.
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Register Your Company in India

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Expand with an Indian Subsidiary

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