Wholly Owned Subsidiary Company

Wholly owned subsidiary company whose stocks are owned by parent company or holding company that has full control over the same WOS. Here, the parent company has 100 % ownership of the WOS outstanding common stock without any minority shareholders. As because of full ownership on the stock; parent companies may or may not take participate in selecting board of directors, management and in operations of the WOS. Parent company and WOS may be of similar theme or can be of different industry. This has been seen many a times that numbers of parent companies hold subsidiary company in different countries because of several legal benefits. In developing countries like India this WOS form of corporate are well in demand and has showed a great success.

• Wholly owned subsidiary company is only registered under the Indian New Companies Act 2013.
• It requires minimum of two directors and two shareholders.
• It is mandatory to have minimum of Rs. 1 lakh of authorized and paid up capital.
• One director must have digital signature certificate whereas at-least two directors must have DIN number.
• After WOS needs to file an application under Form INC - 1 in order to get approval for company's name.
• After getting approval of name; needs to file an application for incorporation of the company under Form INC - 7 along with legal documents like MOA / AOA and submit stamp duty and ROC fees.
• After verification of all the legal documents and filed applications; the concern authority issues certificate of the same.

Advantages Of Wholly Owned Subsidiary Company

Every company needs finance, best management and excellent operational strategy in order to maintain its name and goodwill ne the market. The same will enjoy by the both wholly owned subsidiary company and parent company.

• Financial - wholly owned subsidiary company can easily handle its operations while using parent company's finance resources; it will be easy for WOS to maintain its financial report by the way of parent company's support. On other hand parent company too use WOIS earning while raises its business operations.
• Operational - Will get full or partial support by the parent company in its business operations. It will get an advantage of expertise knowledge and expert guidance by the way of parent company.
• Strategic - wholly owned subsidiary company enjoys complete benefit of strategic in respect of good marketing, best plans and policies, worthy research and development that support wholly owned subsidiary company in its best performance while managing the risk.