NetSol Technologies Inc. said it is forming a wholly owned subsidiary in China to better provide business software and services in that country, particularly automotive and consumer finance applications.

The Calabasas company, which has operated with only a representative office in Beijing, said it expects China will account for nearly 25 percent of its total revenues in fiscal 2010.

“China is a key driver for NetSol,” Chief Executive Najeeb Ghauri said in a statement. “A fully owned China subsidiary will further exhibit our ongoing commitment to our clients and opens up new possibilities for marketing additional services.”

In addition to its core NetSol Financial Suite, the company said it plans to offer additional business intelligence, quality assurance and consulting services through a new Chinese Delivery Center.

Shares were down 3 cents, or 3 percent, to 84 cents in midday trading on the Nasdaq.