A wholly owned subsidiary company means a company which is incorporated in India within the provisions of the Indian Companies Act, 2013 by one or more foreign entities. Indian market offers a convenient and advantageous business environment for foreign entities by opening its doors to Foreign Direct Investment through establishing wholly owned subsidiary companies in India.

Foreign companies can set up their operations in India by forming a Wholly Owned Subsidiary in sectors, where 100% foreign direct investment is permitted under the FDI policy. A wholly owned or An Indian subsidiary company has the maximum flexibility to conduct business in India. A wholly owned subsidiary company shall have the same footing and be subject to the same set of rules which apply to any other Indian company.