India is becoming a preferred expansion destination for South Korean entrepreneurs and companies looking to access a fast-growing market, skilled workforce, and cost-efficient operations. With strong India–Korea trade relations and investor-friendly reforms, starting a business in India from Korea is now simpler than ever.

This guide explains company registration options, legal process, FDI rules, taxation, and compliance for Korean founders planning to set up in India.

Why Korean Companies Are Expanding to India

South Korean businesses are actively investing in India across sectors like manufacturing, IT, electronics, automotive, logistics, and consulting.

Key Reasons

• Large consumer market (1.4B+ population)
• 100% FDI allowed in most sectors
• Cost-effective talent & operations
• Strong India–Korea CEPA agreement
• Growing startup & manufacturing ecosystem

Business Structures Available for Korean Companies in India

Korean entrepreneurs can choose from multiple entry routes depending on business goals.

1. Wholly Owned Subsidiary (Most Preferred)

• 100% ownership by Korean parent company
• Private Limited Company in India
• Full commercial activities allowed

🔗 Internal link:
Subsidiary Company Registration in India for Foreign Companies
https://thestartuplab.in/subsidiary-company-registration-in-india-for-foreign-companies/

2. Branch Office

• Allowed for limited business activities
• RBI approval required
• Not suitable for startups

3. Liaison Office

• Only for market research & coordination
• No income-generating activities

FDI Rules for Korean Companies in India

Foreign Direct Investment is regulated under FEMA & RBI.

FDI Routes

• Automatic Route: No approval required (IT, SaaS, consulting, manufacturing, trading services)
• Government Route: Prior approval required for restricted sectors

🔗 Outbound authority link:
FDI Policy – DPIIT
https://dpiit.gov.in/foreign-direct-investment

Step-by-Step Process to Start a Business in India from Korea

Step 1: Check Sector FDI Eligibility

Confirm whether 100% FDI is allowed under the automatic route.

Step 2: Choose Business Structure

Most Korean founders opt for a Private Limited Company (Wholly Owned Subsidiary).

Step 3: Appoint Directors

• Minimum 2 directors
• At least 1 resident Indian director (mandatory)

Step 4: Obtain DSC & DIN

Digital Signature Certificates & Director Identification Numbers.

Step 5: Company Name Approval

Apply via MCA SPICe+ portal.

Step 6: Incorporation Filing

File:

• MOA & AOA
• Parent company documents (apostilled from Korea)
• Registered office proof in India

Step 7: Open Bank Account & Bring FDI

• Open Indian company bank account
• Receive foreign investment
• File FC-GPR with RBI

RBI & FEMA Compliance for Korean-Owned Companies

Foreign-owned Indian companies must follow RBI reporting norms.

Mandatory Filings

• FC-GPR (foreign capital reporting)
• FLA Return (annual foreign assets & liabilities)

🔗 Internal link:
FLA Filings in India – Foreign Liabilities & Assets Return
https://thestartuplab.in/sft-filings-in-india/

Taxation for Korean Businesses in India

Corporate Tax

• 22% (new regime without exemptions)
• 30% (old regime)

Other Taxes

• GST (if applicable)
• Transfer pricing regulations
• Withholding tax on cross-border payments
• DTAA benefits under India–Korea tax treaty

🔗 Outbound authority link:
India–Korea DTAA – Income Tax Department
https://www.incometax.gov.in

Ongoing Compliance After Registration

Once incorporated, regular compliance is mandatory.

Annual & Periodic Compliances

• ROC filings (AOC-4, MGT-7)
• Statutory audit
• Income tax return
• Board & shareholder meetings
• GST filings (if applicable)

🔗 Internal link:
Annual ROC Filing Services
https://thestartuplab.in/esi-epf-filing-services-for-startups/

Common Challenges for Korean Entrepreneurs

• Understanding Indian regulatory framework
• RBI & FEMA reporting delays
• Transfer pricing documentation
• Language & documentation apostille
• Hiring reliable local professionals

How The Startup Lab Helps Korean Founders

The Startup Lab provides end-to-end India entry support for Korean businesses:

• Company registration in India
• Wholly owned subsidiary setup
• FDI & RBI compliance
• Accounting, tax & ROC filings
• Ongoing legal & compliance support

We act as your single India compliance partner, so you can focus on growth.

Final Thoughts

Starting a business in India from Korea is a strategic move — but success depends on choosing the right structure and staying compliant from day one. With expert guidance, Indian regulations become manageable and predictable.