Increasing the scope of the market not only increases the chances of sales and profits but provides an underlying safety and security for the consumption and use of the goods and services of a Company.
Companies seeking to operate in more than one country can operate its business through a Wholly Owned Subsidiary (WOS). WOS can be defined as those companies in which Parent Company owns all the shares allowing them to exercise control in operational and functional matters. WOS also offer an opportunity for companies to diversify and manage risk.
In India, Wholly Owned Subsidiary (WOS) of foreign entities are mostly incorporated as Private Limited Company as such companies enjoy numerous exemptions under the Indian Company Law, thus minimizing the compliance burden. Incorporation of a private limited company is the easiest, fastest with well-defined laws in place and is the most commonly used entry structure by foreign nationals and foreign companies. Incorporation of a private limited company as a wholly owned subsidiary of a foreign company or joint venture is the most convenient and fastest entry strategy.
Some of the benefits of establishing Wholly-Owned Subsidiary:
For Detailed Procedure of Incorporating a Private Limited Company in India, please visit: