Overview
For a business that intends to trade, hire and grow in India, the wholly owned subsidiary is usually the right answer. It is a distinct Indian company with its own limited liability, the widest activity scope of any entry route, and the domestic corporate tax rate rather than the foreign company rate.
It also has the most straightforward story for customers, banks and future investors: an Indian company with an Indian PAN, invoicing in rupees, hiring on Indian contracts.
The work is in the details — confirming your sector sits on the automatic route, pricing the share subscription correctly, remitting funds through the right channel, and reporting the allotment to the Reserve Bank of India inside the deadline. We handle all four.
Who this is for
- Foreign groups building a durable operating business in India
- Companies that will hire employees or sign local customer contracts
- Businesses expecting sustained Indian profits, where the domestic tax rate matters
- Groups planning to raise local funding or bring in Indian partners later
What the engagement includes
- FDI route confirmation, sectoral cap check and share subscription structuring
- Digital signature certificates and director identification numbers
- Name reservation, MOA and AOA drafting and incorporation filing
- PAN, TAN and GST registrations
- Bank account documentation and inward remittance guidance
- Share allotment, valuation coordination and RBI reporting support
- First-year compliance calendar and statutory register setup
Documents you will need
- Certificate of incorporation and charter documents of the parent, apostilled
- Board resolution approving the investment and subscription to shares
- Passport and address proof of each director and the authorised signatory, apostilled
- Details of the shareholding pattern and proposed capital
- Indian registered office address proof and no-objection certificate
- Resident director consent and identification documents
How it works
- Route and structure confirmation — Sector checked against the FDI policy; capital and shareholding agreed.
- Documentation — Apostille checklist issued; digital signatures arranged for overseas directors.
- Incorporation — Name reserved, charter documents drafted, application filed and certificate obtained.
- Tax and banking setup — PAN, TAN, GST and bank account documentation completed.
- Funding and reporting — Remittance received, shares allotted, and the RBI reporting filed on time.
Typical timeline. Around two to four weeks to incorporation with complete documents; remittance and share allotment reporting follow once the bank account is live.
Questions about Wholly Owned Subsidiary (WOS) Setup
Is 100% foreign ownership actually allowed?
In a large number of sectors, yes, under the automatic route — meaning no prior government approval, only post-investment reporting. Some sectors carry equity caps or approval conditions. Confirming your sector position is the first thing we do.
How is the share price to a non-resident decided?
Shares issued to a non-resident must be priced at or above fair value, determined under the applicable pricing guidelines and supported by a valuation certificate. Under-pricing is a FEMA issue, not merely a commercial one.
What has to be reported to the RBI, and when?
The inward remittance and the subsequent share allotment must be reported through your authorised dealer bank within the prescribed timelines, with the valuation certificate and remittance advice attached. Late filing attracts late submission fees.
Can profits be sent back to the parent?
Yes. Dividends are freely repatriable after tax, subject to compliance with the applicable provisions and the company having distributable profits. We plan the repatriation route at setup rather than leaving it to be discovered later.
Professional fee
Starting From ₹69,999
Government fees and third-party charges billed separately, at actuals.
● Around two to four weeks to incorporation with complete documents; remittance and share allotment reporting follow once the bank account is live.
● First consultation is free, with no obligation to proceed.
● Written scope and fee estimate before any work begins.
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