As per the Indian Companies Act,Yes, if the Indian company is a wholly-owned subsidiary (WOS) of a foreign company, and the foreign company is an SBO (Significant Beneficial Owner) holding more than 10% of the shares in the Indian company, then the Indian company is required to obtain a declaration from its holding company regarding the details of the ultimate beneficial owner (UBO) of the foreign company.

In case the foreign corporate is an SBO of the Indian subsidiary company (WOS), then the Indian subsidiary company would be required to take a declaration from the foreign corporate entity to confirm whether it is an SBO or not. The foreign corporate entity may need to disclose its ultimate holding company and provide additional information regarding the shareholding pattern and control structure.

The declaration from the foreign corporate entity should be obtained within 90 days of the notification of the SBO rules in 2019, or within 30 days of becoming a significant beneficial owner, whichever is later. The Indian subsidiary company would also be required to file the declaration with the Registrar of Companies within 30 days of receipt of the declaration.

It is important for the Indian subsidiary company to comply with the SBO rules and obtain the necessary declaration from the foreign corporate entity to avoid any penalties or legal consequences.