Wholly Owned Subsidiary

Hi

For formation of private limited company there is need to have minimum 2 members. For incorporating a wholly owned subsidiary, i will suggest you to have minimum two shareholders for this purpose A limited hold 100% shares and subscribe memorandum by as company itself and  nominee on behalf of the company.

In short a company can incorporate wholly owned subsidiary through itself alongwith its nominee.

There is no need to increase no. of members upto seven.

Regards

In my view,  you can refer Section 187C

Thanks Mr. Ajay for your rpl.

but i have one querry:

If A Ltd subscribe 100% shares then how there will be 2 subscribers in the Company.??

Another point is that u told me that subscribe the shares in the name of the company and nominee on behalf of the company. But i have a doubt that In MOA which name we will show as subscriber i.e. A Limited or its nominee. And if we show the name of the nominee then which another agreement/document should we attach with the form.

Wholly owned subsidiary of a public company is a public company by virtue of sec3(1)(iv).

So you need to necessarily have 7 members. The shares can be held by 6 individuals as nominees of the holding company. In the MOA u need to mention their names as nominees alongwith holding company name. U need not have any agreement / any other document supporting this. After incorporation u need to comply with the provisions of Sec 187C.

Regards,

Prajakta 

Hi

The MOA of the company will be as follow

Name                      No of shares                         
M/s XYZ Ltd                          9000

Mr. A as nominee               1000

of M/s XYZ Ltd.

Can Private Limited  Company act as Nominee for whiolly owned subsidary company