Incorporation of Wholly Owned subsidiary Company or Subsidiary Company of Foreign Company in India

Foreign Subsidiary

 A subsidiary company of foreign Company in relation to foreign holding means a company in which a foreign holding Company

a. Control the full composition of the Board of directors or; 

b. Hold more than 50% of the total share capital. 

2. Wholly owned subsidiary of foreign Company 

It is a company incorporated under the provisions of the Companies Act, 2013 and in which the foreign company holds 100% of the total share capital of such company.

3. Steps to be taken for incorporation 

Reservation of the name 

The procedure for name approval and name reservation is same as any Indian Company Subject to some additional points 

Before making an application for the incorporation of the company, the foreign company shall apply for the reservation of the name.

 Points to be considered while making reservation of name

a) A foreign company can apply for its own name for reservation for its subsidiary or WOS. 

b) In case if foreign company applies its own name to a reservation for its subsidiary or WOS in India then first of all foreign company shall pass a resolution to use the name by its subsidiary or WOS in India.

 c) Subsidiary or WOS shall use such name but with the extension of word “India” in such name for example a Company named ABC Ltd is a foreign company and intend to incorporate a subsidiary or WOS in India and it giving its own name to the subsidiary or WOS, then the same can be use in India by the company but with “ABC India Ltd d) If a foreign company having any registered trademark outside India the same can be use by it for the trademark of its subsidiary or WOS in India.