Foreign businesses can establish two primary forms of subsidiaries:

• Wholly-Owned Subsidiary (WOS): Where the foreign parent company owns 100% of the equity shares
• Majority-Owned Subsidiary: Where the parent company holds more than 50% of the shareholding

Why Choose a Subsidiary Model in India?

Setting up a subsidiary is often the preferred mode of entry for foreign investors in India due to:

• Full or majority ownership rights
• Better brand and operational control
• Access to tax incentives and DTAAs (Double Taxation Avoidance Agreements)
• Greater legal protection and limited liability
• Opportunity to scale within one of the world’s largest and fastest-growing economies