Incorporation of a Wholly Owned Subsidiary (WOS) under Companies Act, 2013

DOWNLOAD PDF

A Wholly Owned Subsidiary (WOS) is a company whose entire share capital is held by another company, known as the holding or parent company. The process of incorporating a wholly-owned subsidiary in India is governed by the Companies Act, 2013. The application is processed by the Central Registration Centre (CRC), Ministry of Corporate Affairs.

Prerequisites for setting up a WOS (Private Company) in India

  • Holding Company to pass a resolution authorising the setup of a WOS in India and identifying the proposed name(s); paid up capital and authorised signatories / nominees of the WOS
  • Check if RBI/Government approval is required for receiving Foreign Direct Investment (FDI) Identify minimum 2 directors, 1 of whom shall be a Resident Director
  • Identify an Authorised Representative on behalf of Holding Company to sign documents to be submitted for incorporation
  • Identify a Nominee Shareholder of the Holding Company who will hold minimum shares in the WOS on behalf of the Holding Company

Note: The Authorised Representative and Nominee Shareholder cannot be the same person

Powered By EmbedPress

About the Author
Treelife

Treelife provides legal and financial support to startups, small business, companies and entrepreneurs with access to a team of professionals.

We Are Problem Solvers. And Take Accountability.

Related Posts

Shutting Down a Startup – A Step by Step Guide
Shutting Down a Startup – A Step by Step Guide

Blog Content Overview1 When and Why to Shut Down a…

Learn MoreLearn More
Spacetech in India: A Legal and Regulatory Overview
Spacetech in India: A Legal and Regulatory Overview

Blog Content Overview1 What is Spacetech and What does it…

Learn MoreLearn More
SME IPO Listing in India – Platforms, Eligibility, Process
SME IPO Listing in India – Platforms, Eligibility, Process

Blog Content Overview1 What are Small and Medium Enterprises (SME)?2…

Learn MoreLearn More