I. Shareholding pattern for subsidiaries
The difference between a subsidiary company and a wholly-owned subsidiary company is as follows:
- The shareholding pattern in Wholly Owned Subsidiary (WOS)
- 99.9% shareholding shall be of holding company (own by parent company, represented by one director)
- 0.01% shareholding shall be with a nominee of the holding company (own by another director of the parent company in a nominee capacity)
- The shareholding pattern in Subsidiary Company
- More than 50% shareholding shall be of holding company (own by parent company, represented by one director)
- Balance shareholding shall be with a nominee of the holding company (owned by another director of the parent company in a nominee capacity)
Note: Such a pattern is followed to fulfil the requirements of having two shareholders minimum (Sec.3 of Companies Act, 2013).
II. Directors position for subsidiaries
- Atleast one director shall be resident in India.
- Resident in India means a person shall stay in India for atleast 182 days or more in a financial year.
- This concept is common for both types of subsidiary companies