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Wholly Owned Subsidiary by Foreign Entities

In India

• When an entity which is Incorporated outside India

(i.e. foreign country), makes 100% Foreign direct

investment(FDI) in India [as per Indian FDI policy few

sectors are permitted for 100% FDI in India], the

indian company incorporated for this purpose is

said to be wholly owned subsidiary of that foreign

entity.

• There are more exemptions available to private

limited company under the indian companies act

1956, hence most of the companies prefer to form

wholly owned subsidiary private limited company.

Hk Chhabra & Co. ( +91-9350454545 ) 2

Key features of WOS • WOS is regulated by Indian Law i.e. Companies

Act,1956.

• All types of business activities are permitted such as

manufacturing, marketing and service industry.

• It is treated as domestic company under indian tax

law and is eligible for all exemptions, deductions

benefits as applicable to any other Indian

company.

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Step 1-Director Identification Number

(DIN)

• Following are the requirements for DIN of foreign director

• 1. 2 Passport size photograph

• 2. Passport (if passport is in the language other than English, then the same must be translated into English & MUST be duly apostile)

• The translator must carry his details (name, signature, address) and seal on the translated document, Further it should be done by the notary of home country.

• Also the same must contain the date of birth of proposed director.

• 3. Address proof -- driving license, electricity bill, telephone bill or bank account statement (address proof should not be older than 1 year)

• ( if the proof is in the language other than English, then the same must be translated into English & MUST be duly apostle)

Hk Chhabra & Co. ( +91-9350454545 ) 4

• 4. Affidavit

A specimen of such

Affidavit is given.

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• 5. Educational Qualification

• 6. Present Occupation

• If the proposed director is in foreign country then all documents must be apostiled by home country.

• & If the director is presently in India then such apostile is not required.

• The form DIN-1 will be filed and should be attested by a Chartered Accountant or a Company Secretary.

Hk Chhabra & Co. ( +91-9350454545 ) 6

Step-2 Digital Signature • Digital signature of any One director is needed.

• The form of digital signature should be attested by a

Chartered accountant or a company secretary.

Hk Chhabra & Co. ( +91-9350454545 ) 7

Step-3 Approval of Name of

Company • Applicant needs to apply in form 1A with the

registrar of companies in which the company is to be incorporated.

• The name approval form is to be attested by a Chartered Accountant or a Company Secretary.

• For approval of name Government Fees is ₹1000/-

• After the approval of name we move on to the 3rd step i.e. Registration of the company

Hk Chhabra & Co. ( +91-9350454545 ) 8

Step-4 Registration of the Company • After the approval of the name of the company the

applicant needs to submit the required documents

with the memorandum and articles of associations

of the proposed company .

• Memorandum is to be stamped and stamping fee

of memorandum is .15% of the authorized capital of

the company which is to be registered.

• Registration fees of the company is also required to

be paid which depends upon the authorized

capital and is shown in the chart attached.

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