Wholly Owned Subsidiary entity or Foreign Subsidiary Company in India (WOS)

For foreign companies eyeing India's market, one viable route is through a wholly owned subsidiary (WOS). This means that the foreign holding company has complete control and is responsible for its business activities. It is a popular choice for small and medium-sized businesses because India has simplified compliance procedures through digitalization. Our services streamline the process of company incorporation in India and facilitate Foreign Direct Investment (FDI) in India.

FDI Policy

FDI or Foreign Direct Investment in India is permitted through two routes: -

Automatic Route

Under the Automatic Route, the non-resident investor or the Indian company does not require any approval from Government of India for the investment.

Government Route

Under the Government Route, prior to investment, approval from the Government of India is required. Proposals for foreign direct investment under Government route, are considered by respective Administrative Ministry/ Department.

Up to 100% FDI is allowed in Data processing, Software development and Computer consultancy services; Software supply services; Business and management consultancy services, Market research services, Technical testing and Analysis services, under automatic route.

100% FDI in the IT sector in India is permitted in B2B E-commerce.

Type of Entities to choose for FDI

As per Reserve Bank of India (RBI), FDI or Foreign Investment means any investment made by a person resident outside India on a repatriable basis in capital instruments of an Indian company or to the capital of an LLP. Hence only 2 types of entities are allowed to receive

Private/ Public limited companies

Minimum 2 Share holders

Minimum 2 Directors

Minimum 1 resident Director

Income Tax 15 %-22%