South Korea ranks among India’s top 15 sources of foreign direct investment, with cumulative equity inflows reaching USD 6.90 billion from April 2000 to September 2025. For South Korean businesses evaluating their next growth market, company registration in India from South Korea has become an established investment route. It is now actively pursued by mid-market companies, sector specialists, and professional services firms seeking access to India’s 1.4 billion-person consumer base.
Registering a company in India as a foreign investor requires working across multiple regulatory frameworks simultaneously. These include the Companies Act, 2013, the Foreign Exchange Management Act (FEMA), India’s consolidated Foreign Direct Investment (FDI) policy, and the Income Tax Act. Each framework governs a distinct aspect of entity formation, capital remittance, and ongoing operations.
This guide covers the full journey for South Korean businesses: choosing the right legal structure, completing the registration process, preparing documents, understanding tax obligations under the India-South Korea Double Taxation Avoidance Agreement (DTAA), and meeting post-incorporation compliance requirements.
Why South Korean Businesses Are Choosing India for Their Next Expansion
For South Korean decision-makers evaluating new markets, India’s economic trajectory and bilateral investment history present a compelling case. Understanding the macro context before entering the registration process ensures that structural and jurisdictional decisions align with long-term commercial strategy.
The India-South Korea Bilateral Investment Story
Bilateral trade between India and South Korea stood at USD 18.35 billion in FY2026 through November 2025, with both governments targeting USD 50 billion in annual trade by 2030. The India-South Korea Comprehensive Economic Partnership Agreement (CEPA), which came into effect in 2010, has reduced tariffs and expanded investment flows in manufacturing, electronics, automotive, and services sectors.
South Korea ranks as India’s 13th largest source of FDI, with major capital flows directed into automobiles, electronics, steel, and consumer goods. Established Korean brands have built significant operations in India over two decades. Mid-market Korean businesses and sector-specific investors are now following that same path, drawn by the same regulatory openness and market depth.
To support this momentum, the Indian government established the Korea Plus Programme in June 2016 through a bilateral initiative with South Korea. Operated under the Department for Promotion of Industry and Internal Trade (DPIIT) and Invest India, Korea Plus functions as a dedicated single-window investment facilitation cell. It provides end-to-end support from market entry strategy and regulatory navigation through to company incorporation, location planning, and coordination with state authorities. It is a government-to-government mechanism unavailable to investors from most other countries.
Business Structures Available for Company Registration in India from South Korea
Before any registration begins, South Korean businesses must choose the legal vehicle that matches their operational scope, FDI route eligibility, liability requirements, and long-term objectives in India.
Under FEMA and India’s consolidated FDI policy, foreign investors including South Korean businesses cannot establish sole proprietorships or general partnerships in India. Any commercial presence must be structured through a legally recognised entity that complies with the foreign investment framework. The table at the end of this section summarises the key characteristics of each available structure.
Private Limited Company
The Private Limited Company is the most commonly chosen structure for South Korean businesses entering India. Approximately 88% of Korean subsidiaries established in India are wholly owned, according to data from the Korea Trade-Investment Promotion Agency (KOTRA). This structure permits 100% FDI under the automatic route in most sectors, requires no prior government approval, and provides limited liability protection to shareholders.
A Private Limited Company requires a minimum of two directors, of whom at least one must be an Indian resident, and two shareholders who may be the same individuals as the directors. It can raise equity, employ staff, trade commercially, and scale operations without structural constraints.
Limited Liability Partnership
A Limited Liability Partnership (LLP) combines elements of a company and a partnership. FDI is permitted only in sectors under the automatic route without additional caps or conditions. An LLP cannot issue equity shares or raise external funding, which limits its suitability for businesses planning significant scale. It works best for consulting, professional services, or back-office functions where flexibility and lower compliance overhead are priorities.
Branch Office
A Branch Office is an extension of the South Korean parent entity in India rather than a separate legal entity. It requires prior approval from the Reserve Bank of India (RBI). The Korean parent must meet a minimum net worth of USD 100,000 and hold at least a five-year operating track record to qualify. Permitted activities include research and development (R&D), export and import facilitation, technical services, and professional consultancy. Manufacturing and retail trading are not permitted. A Branch Office is taxed at the higher foreign company rate.
Liaison Office
A Liaison Office serves as a representative, non-commercial presence in India. It cannot generate revenue or enter into commercial contracts on behalf of the Korean parent. Its purpose is limited to market research, relationship building, and promotional activities. It requires RBI approval and must be funded entirely through inward remittances from the Korean parent company.
Project Office
A Project Office is a temporary structure set up to execute a specific contract in India. It is commonly used by engineering, procurement, and construction (EPC) firms and infrastructure companies. Where the contract is awarded by an Indian entity and payment is made in foreign exchange, no prior RBI approval is required. The Project Office closes once the contract is completed.
| Structure | FDI Route | Liability | Revenue Permitted | Best Suited For |
| Private Limited Company | Automatic (most sectors) | Limited to shareholder investment | Yes | Full-scale operations, manufacturing, services, trading |
| LLP | Automatic (restricted sectors) | Limited to partner investment | Yes | Consulting, professional and back-office services |
| Branch Office | Government (RBI approval required) | Unlimited (parent liable) | Yes, within permitted activities | R&D, technical services, export and import |
| Liaison Office | Government (RBI approval required) | None | No | Market research, promotion, liaison |
| Project Office | Contract-based | Limited to project scope | Yes, within project scope | EPC, infrastructure, specific project contracts |
How to Register a Company in India from South Korea
The steps below cover the registration of a Private Limited Company, which is the most common route for South Korean businesses. The process is digital-first, governed by the Ministry of Corporate Affairs (MCA), and completed through the MCA portal.
Obtain a Digital Signature Certificate (DSC)
Every director and authorised signatory must hold a valid Digital Signature Certificate (DSC) before any filing can begin. The DSC authenticates all electronic documents submitted to the MCA portal. Foreign nationals including Korean directors obtain their DSC through MCA-approved Certifying Authorities using apostilled passport copies and address proof documents.
Apply for Director Identification Numbers (DIN)
Every proposed director must hold a unique Director Identification Number (DIN) issued by the MCA. For Korean nationals, the DIN is applied for through the SPICe+ form at the time of incorporation, with no separate prior application required. A minimum of two directors must be appointed. At least one must qualify as an Indian resident, meaning a person who has spent at least 182 days in India during the preceding calendar year.
Reserve a Company Name
Proposed company names are submitted through the RUN (Reserve Unique Name) service on the MCA portal. You may submit up to two names, each with a brief justification. The name must not be identical or similar to an existing registered entity under the Companies Act, 2013, and must not contain words implying government affiliation without approval. An approved name remains reserved for 20 days, within which the incorporation filing must be submitted.
Prepare the Memorandum and Articles of Association
The Memorandum of Association (MoA) defines the company’s registered objectives, scope of permitted business activities, and liability structure. The Articles of Association (AoA) governs internal management rules, shareholder rights, and decision-making procedures. Both documents must be drafted with precision. A narrowly drafted MoA can restrict future business activities and may require a costly amendment process at a later stage.
File theSPICe+ Incorporation Form
SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) is the consolidated e-form for company registration on the MCA portal. It integrates multiple registrations into one submission, covering company incorporation, DIN allotment, PAN, Tax Deduction and Collection Account Number (TAN), and optional Goods and Services Tax (GST) registration. The completed SPICe+ form, together with the MoA, AoA, and all supporting documents signed with DSCs, is submitted to the Registrar of Companies (RoC) within whose jurisdiction the company’s registered office falls.
Receive the Certificate of Incorporation
The RoC issues a Certificate of Incorporation upon successful verification of all submitted documents. The certificate includes the Company Identification Number (CIN), which is the company’s permanent registration reference for all future regulatory filings. Private Limited Companies may commence operations upon receiving this certificate.
Apply for PAN, TAN, and GST Registration
A Permanent Account Number (PAN) and TAN are generated automatically alongside the Certificate of Incorporation through the SPICe+ process. GST registration is mandatory when annual turnover exceeds INR 20 lakh (INR 10 lakh for specified special category states), or when the company engages in inter-state supply or e-commerce regardless of turnover. GST registration is filed separately via the Goods and Services Tax Network (GSTN) portal if it was not included in the initial SPICe+ submission.
Open a Business Bank Account and Remit Share Capital
Open a current account with an Authorised Dealer (AD) Category-I bank in India. Required documents include the Certificate of Incorporation, PAN card, a board resolution authorising account signatories, and KYC documents for all directors. Once the account is operational, the Korean parent remits the initial share capital via SWIFT, with the purpose specified as subscription to share capital. Form FC-GPR (Foreign Currency Gross Provisional Return) must then be filed with the RBI through the Foreign Investment Reporting and Management System (FIRMS) portal within 30 days of allotting shares to the Korean investor. This is a mandatory FEMA compliance requirement, and missing this deadline attracts regulatory penalties.
Documents Required to Register a Company in India from South Korea
South Korean businesses hold a specific documentation advantage at the outset of the registration process. Both India and South Korea are signatories to the Hague Apostille Convention. Korean corporate documents need only be apostilled by the Korean Ministry of Foreign Affairs, with no Indian embassy legalisation or consular attestation required. This distinguishes South Korean businesses from investors in non-Hague countries, who must complete a separate and lengthier attestation process.
The following documents are required for Private Limited Company registration in India from South Korea:
| Document | Purpose | Authentication Required |
| Passport copy of all foreign directors and shareholders | Primary identity proof | Notarised and apostilled |
| Proof of residence (utility bill or bank statement, dated within 2 months) | Director address verification | Notarised and apostilled |
| Korean company’s Certificate of Incorporation or Business Registration Certificate | Parent entity identity | Apostilled |
| Board resolution authorising Indian subsidiary establishment | Corporate authority confirmation | Apostilled |
| Audited financial statements of Korean parent (last 2Â financial years) | Required for Branch Office and Liaison Office applications only | Apostilled |
| Proof of Indian registered office address | Mandatory registered presence confirmation | Utility bill and landlord NOC |
| PAN application (Form 49AA) | Tax registration for foreign directors | Filed through SPICe+ |
| MoA and AoA | Core incorporation documents | Executed and signed with DSC |
Tax Considerations Under the India-South Korea DTAA
India and South Korea signed a revised Double Taxation Avoidance Agreement (DTAA) at Seoul on 18 May 2015, which entered into force on 12 September 2016. It replaced the original 1985 Convention and introduced updated provisions covering income from business profits, dividends, interest, royalties, technical service fees, and capital gains.
The DTAA ensures that income earned by Korean businesses or individuals operating in India is not subject to full taxation in both jurisdictions simultaneously. Korean businesses can invoke its provisions to reduce withholding tax on payments such as dividends, interest, and royalties remitted from the Indian subsidiary to the Korean parent. The DTAA rate is typically lower than India’s domestic withholding tax rate. To claim treaty benefits, the Korean entity must hold a valid Tax Residency Certificate from Korean tax authorities, and eligibility must be confirmed with a qualified Indian tax advisor.
Three areas warrant particular attention. First, Permanent Establishment (PE) risk: a Korean company’s activities in India can create a taxable PE under the DTAA if the nature, duration, or scope of activities crosses the defined threshold. This applies to Korean employees on extended deputation in India and to Liaison Offices conducting activities beyond their permitted scope. Second, transfer pricing: all inter-company transactions between the Indian subsidiary and its Korean parent must be at arm’s length and supported by annual Transfer Pricing documentation. This covers management fees, royalties, loans, and inter-company services. Third, the applicable corporate tax rate differs by entity type and has a direct bearing on net returns from the India operation.
For South Korean businesses seeking structured DTAA planning as part of their India entry, India Company Incorporation’s business setup consultancy services cover tax structuring, FEMA compliance, and transfer pricing advisory within an integrated India entry engagement.
| Entity Type | Effective Tax Rate | Notes |
| Private Limited Company | Approximately 25.17% | Concessional regime available under Section 115BAA of the Income Tax Act |
| LLP | Approximately 30% plus applicable surcharge and cess | Not eligible for the concessional corporate tax rate |
| Branch Office or Project Office | Approximately 35% plus applicable surcharge and cess | Taxed as a foreign company; DTAA may reduce applicable withholding taxes on specific payments |
Post-Incorporation Compliance Obligations for South Korean Companies in India
Receiving the Certificate of Incorporation marks the start of a continuous compliance cycle. South Korean companies operating in India must meet statutory obligations across company law, foreign exchange management, direct tax, indirect tax, and employment regulations. Non-compliance attracts penalties, can complicate profit repatriation to the Korean parent, and creates exposure during future audits or M&A activity.
Registrar of Companies Annual Filings
File Form AOC-4 (audited financial statements) and Form MGT-7 (annual return) with the RoC within the prescribed timelines each financial year. These filings are linked to the company’s Annual General Meeting (AGM), which must be held within six months of the close of each financial year.
FEMA Annual Compliance
Submit the Foreign Liabilities and Assets (FLA) Return to the RBI every year by 15 July. This filing is mandatory for any company that has received foreign investment or holds foreign liabilities, regardless of whether further investment activity occurred in that year.
Direct Tax
File the corporate income tax return by 31 October each year, or by 30 November for companies subject to a transfer pricing audit. Advance tax payments are due quarterly. TDS must be deducted on all applicable payments, including salaries, vendor fees, and remittances to the Korean parent, deposited monthly, and reported through quarterly TDS returns.
GST Compliance
File monthly or quarterly GST returns based on the company’s turnover and registration type. Companies engaged in inter-state supply or e-commerce must file returns regardless of the applicable turnover threshold.
Statutory Audit
Appoint a qualified Chartered Accountant firm as statutory auditor within 30 days of incorporation. Annual statutory audits are mandatory under the Companies Act, 2013. Maintaining compliant books of accounts from the first day of operations ensures a clean audit trail for RoC filings, tax assessments, and future capital infusions from the Korean parent.
India Company Incorporation manages registration, tax, and ongoing compliance as a single point of contact for South Korean businesses from day one. Make an enquiry for company registration services in India.
Key Advantages for South Korean Businesses Registering a Company in India
Beyond the registration mechanics, South Korean companies benefit from a set of structural and bilateral advantages that reduce the cost and complexity of entering India relative to investors from many other markets.
Hague Apostille Convention membership
Both India and South Korea are signatories to the Hague Apostille Convention. Korean corporate documents, including certificates of incorporation, board resolutions, and director identity documents, need only be apostilled by the Korean Ministry of Foreign Affairs. The embassy legalisation step required by non-Hague countries does not apply, which reduces preparation time and cost at the outset.
India-South Korea DTAA protection
The revised 2015 DTAA provides treaty-level tax certainty on cross-border flows of dividends, interest, royalties, and technical service fees. It reduces the effective tax cost of operating between Seoul and India and provides a defined framework for managing PE risk and transfer pricing obligations.
Korea Plus Programme access
Korean businesses can engage with Korea Plus, India’s dedicated bilateral investment facilitation cell, for support with regulatory guidance, state-level coordination, and accelerated approvals. As a government-to-government mechanism backed by both DPIIT and the South Korean government, it provides a level of institutional access unavailable to investors from countries without a bilateral facilitation programme.
CEPA tariff advantages
The India-South Korea CEPA reduces tariffs on a range of Korean goods entering India. For Korean businesses establishing manufacturing or trading subsidiaries, CEPA provides a direct commercial benefit that improves landed cost economics and competitiveness in the Indian market.
100% FDI under the automatic route
India permits 100% FDI under the automatic route across manufacturing, IT, financial services, and most service sectors. South Korean businesses can own their Indian entity outright, with no requirement for a local joint venture partner in the majority of eligible sectors.
Established Korean business ecosystem
Korean industry associations, KOTRA offices, and chambers of commerce operating across India support new entrants with market intelligence, peer connections, and introductions to state government bodies. South Korean businesses entering India for the first time can draw on this network to reduce the learning curve and accelerate operational setup.#
Conclusion
South Korean businesses entering India face a structured but demanding regulatory journey. From selecting the right entity and managing FEMA filings to meeting annual RoC obligations and structuring cross-border tax flows under the DTAA, each stage requires local expertise and systematic execution.
India Company Incorporation manages the full India entry process for foreign businesses as a single point of contact, from incorporation and FDI compliance through to ongoing secretarial, tax, and accounting support across India.
Talk to us to begin your India entry with a team that understands both the regulatory requirements and the business objectives behind them.
Frequently Asked Questions on Company Registration in India from South Korea
1. Can a South Korean company own 100% of an Indian Private Limited Company?
Yes. India permits 100% FDI by South Korean businesses in most sectors under the automatic route, meaning no prior government approval is required. The South Korean parent or investor can hold the entire share capital of the Indian Private Limited Company. At least one director must be an Indian resident, but full foreign ownership of equity is permitted in sectors open to 100% FDI.
2. What documents does a South Korean business need to register a company in India?
The core documents required are apostilled passport copies and address proofs for all foreign directors, the Korean parent company’s apostilled Certificate of Incorporation or Business Registration Certificate, a board resolution authorising the Indian subsidiary, proof of the Indian registered office address, and the executed MoA and AoA signed with DSCs. Branch Office and Liaison Office applications additionally require apostilled audited financial statements of the Korean parent for the preceding two financial years.
3. How long does company registration in India take for South Korean businesses?
Timelines depend on the entity structure and the completeness of documentation submitted. A Private Limited Company is typically incorporated within 15 to 20 business days once all documents are in order and submitted via SPICe+. A Branch Office or Liaison Office requires prior RBI approval, which adds approximately four to eight weeks to the overall timeline. Document apostille in South Korea and bank account opening in India are parallel steps that also affect the overall schedule.
4. Does India have a Double Taxation Avoidance Agreement with South Korea?
Yes. India and South Korea signed a revised DTAA on 18 May 2015, which entered into force on 12 September 2016, replacing the earlier 1985 Convention. The agreement covers income from business profits, dividends, interest, royalties, technical service fees, and capital gains, and provides for reduced withholding tax rates on qualifying cross-border payments. South Korean businesses must obtain a Tax Residency Certificate from Korean tax authorities and seek professional guidance to correctly invoke DTAA benefits for their specific income streams.
5. What is the Korea PlusProgrammeand how does it help South Korean investors in India?
Korea Plus is a dedicated investment facilitation cell established in June 2016 through a bilateral initiative between the governments of India and South Korea. Operated under DPIIT and Invest India, it functions as a single-window support agency for Korean businesses planning to set up or expand in India. Korea Plus provides assistance with market entry strategy, company incorporation, regulatory navigation, state-level coordination, and resolution of investor grievances. It also participates in policy advocacy to improve the business environment for Korean enterprises operating across India.
