Incorporation AI

If you will earn revenue in India, a company (Pvt Ltd), LLP or branch. If you will only research the market and liaise, a liaison office. If you have won a contract from an Indian company, a project office. For manufacturing you need a company (branches can't manufacture).

Most set up a local company (Pvt Ltd) owned by the Korean parent. It can manufacture, sell and provide services, and profits come back as dividends. Incorporation is also the most common work among Adullam's clients.

A branch is part of the parent, so the parent is directly liable, and it can only do what the RBI allows. It can't manufacture or retail, and its tax rate is 35%. A company is a separate entity with fewer restrictions and tax rates from 22% (concessional).

For small service businesses such as consulting, design or IT with no plans for outside investment. Running costs are low, but the tax rate is 30% and there are no shares, so raising investment or granting stock options is hard.

Sector caps on foreign investment, issuing shares at or above fair value, and the shareholders' agreement. Put deadlock resolution, dispute jurisdiction, transfer restrictions and veto rights on key decisions in writing.

Yes, in sectors under the automatic route (100%). But a Pvt Ltd needs at least two shareholders, so the second is usually an individual or affiliate nominated by the parent.

There is no direct conversion. You incorporate a new company and then close the liaison office. Closure needs an auditor's certificate and tax clearance, which takes a few months.

Name reservation ₹1,000; no incorporation fee up to ₹15 lakh authorised capital; stamp duty on the constitution varies by state (for ₹10 lakh capital, from ₹720 in Tamil Nadu to ₹6,020 in Karnataka). Director DSCs cost about ₹1,500–₹2,500 each.

From name approval to the certificate of incorporation takes 10–15 business days if documents are in order. Including the bank account, capital remittance and FC-GPR, it is 4–8 weeks in Adullam's experience. Allow another 1–2 weeks for apostilles on Korean documents.

Neither companies nor LLPs have a statutory minimum. Choose a realistic amount with visas, banks and business size in mind; there is no incorporation fee up to ₹15 lakh authorised capital.

RBI approval usually takes 6–8 weeks, sometimes 10–20 weeks. Within 30 days of approval you must file FC-1 (fee ₹6,000).

Name reservation ₹200; FiLLiP fee of ₹500–₹5,000 depending on contribution (up to ₹25 lakh); stamp duty on the agreement varies by state. For two partners and a small contribution, about ₹6,000–₹18,000 including professional fees.

Government fees are only about ₹600–₹1,200, but accounting and filing services run ₹15,000–₹50,000+, and statutory audit starts at ₹5,000–₹20,000. Costs rise sharply as you grow and add transfer pricing reports.

Certificate of registration and business registration in English, articles of incorporation, a board resolution approving the Indian company, investment and director appointments, and a power of attorney — all with notarised translation and apostille.

From Korea's Ministry of Foreign Affairs (or a designated body). Korea and India are both parties to the Apostille Convention, so no Indian embassy legalisation is needed. Notarise first, then apostille.

A Pvt Ltd needs at least two directors, one of whom must be a resident director who stayed in India 182+ days in the financial year. The others can be in Korea.

Send an expat and appoint them as director, or appoint a locally hired executive. In the first financial year the requirement is pro-rated to the incorporation date. If you use a nominee director, define their liability in a contract.

A DSC is a director's digital signature for online filings; a DIN is a director identification number. New directors get their DIN with SPICe+ incorporation (up to 3); existing DINs are reused.

Apply for up to two names that don't clash with existing companies or trademarks. Approved names are valid for 20 days. To use the parent's name you need a board resolution (consent to use).

Once the company account is open, each shareholder remits exactly the declared initial paid-up capital. Agree the message format (MT199 etc.) with the bank in advance, and keep the FIRC and investor KYC.

Issue shares within 60 days of receiving the capital and report on FIRMS within 30 days of issue. You must register the entity (Entity Master) before the first filing; late filing attracts a late submission fee.

A fee of ₹7,500 + amount × 0.025% × days of delay, doubling every year (capped at 100% of the investment). After 3 years it goes to compounding. There is no discretionary waiver.

A company in an automatic-route sector needs no prior approval — only post-facto reporting. Branch and liaison offices need RBI approval via an AD bank; project offices have general permission if conditions are met.

Under the March 2026 amendment, if beneficial ownership from a land-border country is 10% or less with no control, it is automatic route; above that, government approval is needed. Beneficial owners must be declared when investing. Branch and liaison offices with Chinese or Hong Kong links need prior RBI permission.

Yes, under the external commercial borrowing (ECB) rules. The February 2026 amendment raised limits and removed the interest cap, but related-party loans must be at arm's length, with a default minimum maturity of 3 years. LLPs can now borrow too.

Under the concessional regime it is 22% (about 25.17% with surcharge and cess); otherwise 25% or 30% depending on turnover. Check the 2026 surcharge changes before filing.

As a foreign company, 35% plus surcharge (2% on income of ₹1–10 crore, 5% above) and 4% cess. There is no additional dividend tax when profits are sent to the parent.

Under the Korea–India tax treaty, withholding tax on dividends is capped at 15%. You need a Korean tax residency certificate (TRC) and Form 10F to claim it.

The Income-tax Act 2025 took effect on 1 April 2026: a single "tax year" is used and section numbers changed. Minimum alternate tax (MAT) was cut to 14% and made a final tax.

Transfer pricing rules require arm's-length pricing. If covered, you file a Form 3CEB report and the corporate tax deadline moves to 30 November. IT services can also consider the safe harbour announced in 2026 (15.5% on cost).

You start the application with AGILE-PRO-S in SPICe+, but registration needs an officer's verification. It may be mandatory depending on your transactions, so sort it out before starting business.

First auditor appointment and address proof within 30 days, share certificates within 60 days, commencement of business (INC-20A) within 180 days — and FC-GPR for the capital.

From 31 March 2026 it is once every three years, by 30 June of the due year. Late filing costs ₹5,000 per DIN and the DIN is deactivated. Update within 30 days if contact details change.

Yes. A subsidiary of another company is excluded from the "small company" definition regardless of size, so it doesn't get the audit and annual filing relief.

The foreign liabilities and assets return (FLA) to the RBI by 15 July each year, plus financial statements (AOC-4), the annual return (MGT-7) after the AGM, and the corporate tax return.

By 30 September each year it files an annual activity certificate (AAC) with the AD bank and the international taxation directorate, plus FC-3, FC-4 and a nil income tax return.

A company goes through winding up or strike-off with the MCA; branch and liaison offices need an auditor's certificate, tax clearance and RBI reporting. Adullam has also handled company closures.

Yes — incorporate with a virtual office address and move later. If you didn't file the address at incorporation, file address proof (INC-22) within 30 days. You can browse offices by city on Adullam India Property.

A branch can buy property needed for its business; a liaison office can only lease. Companies from some countries need prior RBI approval. See the contract essentials on Adullam India Property.

Where your customers and partners are comes first. Korean companies cluster in Delhi NCR, Chennai, Pune and Bengaluru, and stamp duty and incentives vary by state. We compare them with you in a consultation.

It is Gujarat's international financial services centre (IFSC), used mostly by finance, insurance and fund businesses. Regulators and tax rules differ from elsewhere, so compare it only if your sector fits.