Project Story: Creating a Wholly Owned
Subsidiary for a Growing Company
About the Client
Our client, a rapidly growing enterprise, had successfully established a stronghold in its industry with
ongoing projects already in motion. With a vision to diversify and launch a new project, the company faced
a challenge: how to start fresh without disrupting its existing operations.
Project Background
The company wanted to build a new line of business but was concerned about overlapping finances,
compliance risks, and brand dilution. The goal was to preserve the strength of the parent company
while giving the new project a dedicated identity and structure.
Our Role in the Journey
We partnered with the client to design a strategy that ensured growth with stability:
Understanding Aspirations – Discussed in detail the client’s new project vision, investment
requirements, and long-term scalability.
Risk Evaluation – Analysed potential risks of running the new project under the same entity—such
as financial exposure, taxation complexities, and management challenges.
Strategic Solution – Recommended the formation of a Wholly Owned Subsidiary (WOS) of the
existing company to keep both businesses structurally independent yet financially aligned.
Regulatory Guidance – Explained the compliance framework, shareholding patterns, and corporate
governance advantages of creating a WOS.
Execution Support – Assisted in preparing incorporation documents, drafting shareholder
agreements, and securing all required approvals.
Seamless Transition – Ensured the new subsidiary was legally incorporated without interrupting the
operations of the parent company.
The Result
By creating a Wholly Owned Subsidiary, the client was able to:
Protect the parent company’s existing operations and assets.
Launch the new project with its own legal identity and focused management team.
Maintain complete ownership and control while gaining flexibility in operations.