A Korean company can incorporate an Indian private limited company under the automatic route in most sectors. The parent's board resolution is notarised in Korea and apostilled by the Ministry of Foreign Affairs, together with its certificate of corporate registry. The Indian company needs at least two shareholders and two directors, one resident in India. Once capital arrives from Korea, shares are allotted within sixty days and reported on Form FC-GPR. Incorporation normally takes three to five weeks after documents are received.
- Document route
- Korean notary, then apostille from the Ministry of Foreign Affairs
- Time difference
- IST is 3h30 behind Korea all year (no daylight saving)
- Vehicle
- Private limited company
- Approval
- Automatic route in most sectors
Indian Subsidiary Setup from South Korea: how it works
We agree the outline with the Korean parent: shareholding, paid-up capital, the registered office, the Indian resident director and the business objects, which should be wide enough for manufacturing, trading and services. We draft the Korean board resolution and director consents in English. The representative director signs before a Korean notary and the Ministry apostilles the resolution and the certificate of corporate registry. Passports and address proofs of Korean directors are also notarised and apostilled for their digital signature certificates.
In India we file the incorporation form, which issues the company's PAN and TAN. We help open the bank account, receive capital and allot shares, and file FC-GPR through the bank. Many Korean suppliers then need industrial land or a factory lease, GST registration, import export code, factory licence and environmental consents before production starts, and we coordinate those in sequence. Where the Indian company will mainly supply one Korean customer, we also review the supply terms and transfer pricing from the start.
What clients in South Korea should know
- The certificate of corporate registry is a public Korean document and can be apostilled without going through a notary.
- Dividends from India to the Korean parent can benefit from the India and Korea tax treaty rate with a residency certificate and Form 10F.
- State industrial policies in Tamil Nadu, Uttar Pradesh, Andhra Pradesh and elsewhere offer incentives, but the incentive agreements need careful legal review.
Step by step from South Korea
Video consultation
A call at a time that suits South Korea, after we have read your documents.
Documents signed in South Korea
Korean notary, then apostille from the Ministry of Foreign Affairs
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in South Korea where needed.
The full guide
This page covers what changes when you are in South Korea. For the law, the documents and the step-by-step procedure, read our main page on Indian Subsidiary Setup, or see all services for clients in South Korea and the Doing Business in India practice area.
Questions from clients in South Korea
Can a Korean company own 100 per cent of an Indian company?
In most sectors yes, through the automatic route. A second shareholder, often a group company or nominee, is still needed for a private company.
Can the resident director be an employee from Korea?
Yes, if that person stays in India for at least 182 days in the financial year. Otherwise an Indian resident must be appointed.
How soon can the company start operating?
It can open a bank account and sign contracts soon after incorporation, but manufacturing needs further licences that take longer.