Wholly-owned Subsidiary/Joint Venture
A foreign company may set up a WOS in sectors where 100% FDI is permitted under the FDI policy. Alternatively, it could enter into a joint venture with an Indian partner, which may entail the following advantages for a foreign investor:
- Established distribution/marketing set-up of the Indian partner
- Available financial resources of the Indian partner
- Established contacts of the Indian partner, which help smoothen the process of setting up operations
A WOS of a foreign company is treated at par with any domestic Indian company within the scope of approval and subject to all Indian laws and regulations as applicable to other domestic Indian companies.
- 13. Entry Strategies for Foreign Investors, Department for Promotion of Industry and Internal Trade, https://dipp.gov.in/sites/default/files/FDI-PolicyCircular-2020-29October2020_0.pdf accessed on 30 October 2020