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Subsidiary Entity

Subsidiary Entity

Wholly Owned Subsidiary or Foreign Subsidiary Company in India (WOS)

For foreign companies looking to establish a strong, controlled presence in India, setting up a Wholly Owned Subsidiary (WOS) is one of the most preferred routes. With this structure, the foreign parent company retains complete ownership and full control over the Indian entity's business operations and decision-making. It remains a popular choice among small, medium, and large businesses alike, especially as India continues to simplify compliance through digitalization. At Vagrecha & Associates, we handle the entire incorporation process end-to-end, ensuring smooth Foreign Direct Investment (FDI) compliance and a hassle-free entry into the Indian market.

FDI Policy

FDI or Foreign Direct Investment in India is permitted through two routes: -

Automatic Route

Under this route, foreign investors and Indian companies can go ahead with the investment without seeking prior approval from the Government of India.

Government Route

Under this route, investment requires prior approval from the Government of India. Such proposals are reviewed and cleared by the concerned Administrative Ministry or Department before the investment can proceed.

Foreign Direct Investment of up to 100% is permitted under the automatic route in the following IT-related services: data processing, software development and computer consultancy, software supply, business and management consultancy, market research, and technical testing and analysis.

Additionally, 100% FDI is allowed in B2B e-commerce within India's IT sector.

Types of Entities to Choose for FDI

As per the Reserve Bank of India (RBI), Foreign Direct Investment (FDI), or Foreign Investment, refers to any investment made by a person resident outside India, on a repatriable basis, in the capital instruments of an Indian company or in the capital of an LLP. Accordingly, only two types of entities are eligible to receive FDI:

Limited Company
  • Private/ Public limited companies
  • Minimum 2 Share holders
  • Minimum 2 Directors
  • Minimum 1 resident Director
  • Income Tax 15 %-22%
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Limited liability Partnership
  • Minimum 2 Partners
  • Minimum 1 resident Partner
  • Partners are owners and managers
  • Income Tax 30%
  • No Dividend Tax
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Affiliations

Frequently Asked Questions

What is a subsidiary entity?

A subsidiary is a business entity that is fully or partially owned by another company, either the parent or the holding company. The ownership of the subsidiary is determined by the percentage of shares held by the parent company.

Subsidiary entities can help with risk management by isolating business liabilities. They offer a company additional operational flexibility and many tax benefits. A subsidiary entity also helps with better market growth and expansion.

A subsidiary entity can separate the parent company’s financials from the child company. It also offers significant tax benefits to the parent company. The profitability of the subsidiary entity is also reflected in the financials of the parent company.

BC Shetty & Co. can take care of all the financial aspects of the subsidiary company. It can also help you in the formation of a subsidiary entity and manage all your company finances. It also takes care of audits, payrolls, compliance management, etc.

Some of the common reporting requirements for subsidiary entities include:

  • Financial statements
  • Audits
  • Tax returns
  • Regulatory filings
  • Corporate governance reports
  • Management reports

You must understand the regulatory requirements and the tax laws. Before starting your subsidiary entity, you must also perform risk assessments and compliance checks.

Why Choose Vagrecha & Associates?

  • Dedicated Client Support

A single point of contact for every query, with quick and responsive support whenever you need it.

  • Regular Updates

Stay informed with newsletters covering the latest changes in tax, compliance, and regulatory updates.

  • Accuracy You Can Rely On

Every deliverable goes through a 3-layered quality review and external peer check before it reaches you.

  • Dedicated Client Portal

Access your documents, filings, and updates anytime through a secure, dedicated portal built for transparency.

  • Experienced Chartered Accountants

A team of qualified CAs bringing years of hands-on expertise across industries and compliance areas.

  • Weekly Status Updates

Know exactly where your work stands with consistent, proactive status updates every week.

IMPORTANT LINKS

Statutory Audit
Gst Audit
Gst Registration
GST Filing
Payroll Services
Tax Audit
CFO Services
International Taxation
Startup Registration Process In India
Transfer Pricing
Income Tax Consulting
Limited Liability Partnership
Startup Funding In India
Private Limited Company
Bookkeeping Services
Accounting Outsourcing
Incorporate Subsidiary Of Foreign Company In India
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I typically respond within a few hours!

CA Deepak K. Vagrecha

Founder

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Mr. Ashish Vanapalle

Audit & Tax Executive

Detail-oriented Audit Executive bringing 2 years of corporate experience post-articleship, proficient in managing complex statutory and internal audits. His specialized knowledge extends to SEZ compliance, Softex filings, and IRS form handling (W-8, W-9, 1040), making him a valuable resource for both domestic and international clients.

What Sets Him Apart:

  • Highly adept at translating complex raw data into strategic MIS reports that deliver actionable business intelligence and drive data-informed decisions
  • Statutory, Internal, and Compliance Audits
  • ROC filings under the Companies Act, 2013 via MCA V2/V3, and drafting statutory documents like board resolutions and notices.
  • USA Tax Compliance & Bookkeeping

CMA Sreedhar Reddy K

Cost and Management Accountant

Detail-oriented Audit & Tax Executive and an Associate Member of ICMAI, With hands-on experience in taxation, audit, accounting, and international bookkeeping. He brings a disciplined and result-oriented approach to every assignment. His work focuses on helping businesses complete their compliance tasks accurately and on time.

Specializations:

  • Handles cost accounting, cost management, cost analysis, and filing of cost audit forms (CRA-2 & CRA-3)
  • Manages ROC and corporate compliances, including Company & LLP registrations and closures.
  • Adept at handling GST refunds and statutory notices.
  • Oversees monthly and annual statutory returns, including GST, EPF, ESI, and PT filings.

Amaravathi K

Human Resources Manager | Talent Strategist | Culture Champion

Amaravathi K is a dynamic and results-driven Human Resources Manager with over 3 years of experience in strategic HR leadership, specializing in the professional services and finance & accounting sectors. She plays a pivotal role in shaping the firm’s people strategy by aligning talent management with business goals.

With proven expertise in talent acquisition, employee engagement, HR compliance, and performance management, Amaravathi ensures that the firm not only attracts high-calibre professionals but also fosters a positive and growth-oriented work culture. Her focus on building people-first policies and promoting workplace harmony has strengthened employee morale, retention, and productivity.

Her deep understanding of labour laws, statutory regulations, and best HR practices allows her to implement effective policies that balance organizational compliance with employee satisfaction. She is instrumental in driving employee training programs, succession planning, and leadership development, thereby nurturing the firm’s next generation of leaders.

Amaravathi’s leadership style is marked by empathy, strategic thinking, and continuous innovation—making her an invaluable asset to both management and staff.

Core Competencies:

  • End-to-end Recruitment and Onboarding
  • HR Policy Design and Statutory Compliance
  • Performance Appraisal Systems and Goal Setting
  • Employee Engagement, Satisfaction, and Retention
  • Learning & Development (L&D) Initiatives
  • Driving a Culture of Collaboration and Continuous Improvement

With her passion for people and commitment to operational excellence, Amaravathi K continues to build and sustain a high-performance, values-driven workforce.

Ms. Prathyusha Maremanda

Audit & Tax Executive

Ms. Prathyusha Maremanda is a committed Audit & Tax Executive, holding a Bachelor’s degree in Commerce and having cleared the CA Intermediate level. Currently pursuing her CA Final, she plays an active role in delivering audit, taxation, and compliance services to a wide range of clients.

She has hands-on experience in direct taxation, including preparation and filing of Income Tax Returns for individuals, firms, and corporates, along with tax audit reporting and advisory. Her support in tax planning ensures statutory compliance while optimizing tax outcomes for clients.

In indirect taxation, Prathyusha is proficient in managing GST compliance processes—from registration and return filings to reconciliations, amendments, refunds, and departmental audits. She is adept at handling GST notices and providing litigation support and representation before authorities.

Her audit experience includes statutory, tax, and bank audits, with responsibilities such as transaction verification and control testing. She has also contributed to concurrent and loan audits for banks, identifying compliance gaps and operational risks.

In addition, she is skilled in corporate law compliance, managing ROC filings under the Companies Act, 2013 via MCA V2/V3, and drafting statutory documents like board resolutions and notices.

Prathyusha's analytical mindset and client-centric approach enable her to provide practical and timely solutions. With a strong commitment to professional growth, she continues to add value to the firm’s assurance and advisory practice.

CA Satish G – Indirect Taxation Manager

Chartered Accountant | B.Com

Satish G is a Chartered Accountant and commerce graduate, currently serving as Indirect Taxation Manager at Vagrecha & Associates. He began his journey with the firm during his articleship in 2019 under the mentorship of CA Deepak K. Vagrecha and CA Suneeta B. Jain.

Satish possesses comprehensive knowledge in indirect taxation, direct taxation, audit, and regulatory services. He has been actively engaged with GST since its inception, handling audits, refunds, investigations, and representation before authorities.

Specializations:

  • GST Registration, Return Filing & Audit
  • Income Tax & TDS Compliance
  • Tax Audits and Departmental Representation
  • Statutory, Internal, and Stock Audits
  • MCA Filings and Corporate Law Compliance

He also assists with company incorporations, private placements, and other corporate services, providing end-to-end compliance support to clients. His dedication, sharp analytical skills, and thorough understanding of tax laws make him a key pillar of the firm’s operations.

CA Suneeta B. Jain – Partner

Fellow Member, ICAI

CA Suneeta B. Jain a Fellow Member of ICAI, with over 15 years of experience in taxation, wealth management, and financial compliance. She is recognized for her analytical acumen, empathetic client service, and innovative approach to tax planning.

Her practice focuses on tailoring tax strategies for a diverse clientele—including high-net-worth individuals, family-owned businesses, trusts, and corporates. She has a strong command over return filings, wealth preservation techniques, and statutory compliance.

CA Suneeta is admired for her people-first leadership, mentoring approach, and excellence in delivering customized financial solutions. Her strengths lie in blending regulatory understanding with long-term financial planning, helping clients optimize tax positions while maintaining full compliance.

Core Expertise:

  • Direct Taxation & Return Filing
  • Wealth & Asset Management
  • Estate & Trust Planning
  • Investment-oriented Financial Review
  • Customized Tax Strategies

She continues to inspire her team through values of integrity, responsibility, and continuous innovation.

CA Deepak K. Vagrecha

Fellow Member, ICAI

CA Deepak K. Vagrecha is the Founder of Vagrecha & Associates and a Fellow Member of the Institute of Chartered Accountants of India (ICAI). With over a decade of professional experience, he brings deep expertise in accounting, auditing, taxation, business advisory, and regulatory compliance.

He began his journey at the reputed firm Borker & Mazumdar, Mumbai, and was a resident at the prestigious RVG Hostel, Andheri—commonly known as the "CA Factory." This institute has produced over 16,000 successful CAs, including industry icons such as Rakesh Jhunjhunwala, Motilal Oswal, and Kumar Mangalam Birla.

CA Deepak is known for his visionary thinking, client-first approach, and strategic mindset. His leadership style is marked by integrity, attention to detail, and a relentless drive for excellence. He has played a pivotal role in business restructuring, regulatory transformation, and financial process optimization for clients across sectors.

Specializations

  • Audit and Assurance Services
  • Direct & Indirect Tax Compliance
  • Strategic Structuring & Tax Planning
  • Business Advisory & Process Reengineering
  • Domestic and International Compliance

His ability to simplify complex issues and align financial strategy with business goals has made him a trusted advisor to corporates, entrepreneurs, and family businesses.