set up an Indian Subsidiary your foreign parent company can own.

What is an Indian Subsidiary (WOS)?

A Wholly Owned Subsidiary (WOS) is a Private Limited Company incorporated in India where a foreign parent company holds virtually all of the shares. It's registered under the same Companies Act, 2013 framework as any Private Limited company, with additional FEMA/RBI compliance layered on top for the foreign investment involved.

Can a foreign company be the sole shareholder of an Indian subsidiary?

No. Indian law requires a minimum of 2 shareholders for a Private Limited company, so a single foreign corporate entity cannot be the sole shareholder. In practice, the foreign parent holds 99%+ of shares directly, and a nominee shareholder — an individual or another group entity — holds a token share to meet this requirement.

What is the FDI reporting requirement for an Indian Subsidiary?

Foreign Direct Investment into the subsidiary must be reported to the RBI. Form FC-GPR is filed via the RBI's FIRMS portal within 30 days of allotting shares to the foreign parent, and an Annual Return on Foreign Liabilities and Assets (FLA Return) must be filed with the RBI every year by 15 July.

What extra documents are needed from the parent company?

You'll need the foreign parent's certificate of incorporation and a board resolution authorising the Indian subsidiary and the investment. These documents typically need notarisation and apostille (or consular legalisation) in the country of origin before they can be used for the Indian filing — this adds real time versus a purely domestic incorporation.

Is 100% foreign ownership always allowed?

Not always. Most sectors allow 100% FDI under the automatic route, which needs no prior government approval, but some sectors require the government approval route instead. Check applicability for your specific sector before assuming automatic-route eligibility — our CA can confirm this for you.

What is the ongoing compliance like for an Indian Subsidiary?

Heavier than a standard Private Limited company. Beyond the usual MCA filings, you'll have the FEMA/RBI layer — the FC-GPR filing and the annual FLA return — and related-party transactions with your foreign parent may trigger transfer-pricing documentation requirements. It's a genuine trade-off worth factoring in before you incorporate.

How much does Indian Subsidiary registration cost?

Shunya's professional fee is ₹1,999. Government fees, stamp duty and third-party costs such as apostille and the DSC are billed separately, and depend on your shareholding structure and sector route. Share your structure with us and a CA will walk you through the full cost on your first call. Timelines also vary more than a domestic Private Limited incorporation, since they depend on apostille and notarisation turnaround from the parent company's country, which we don't control.