India Market Entry Services for South Korean Companies

India has become an increasingly important destination for South Korean companies seeking access to a large consumer market, manufacturing capacity, technology talent, industrial supply chains and long-term growth opportunities.

Korean businesses have already built a substantial presence in India across automobiles, electronics, engineering, steel, consumer products, financial services and technology. The next phase of India–Korea economic cooperation is expanding into areas including electric mobility, batteries, semiconductors, shipbuilding, clean energy, critical minerals, artificial intelligence and advanced manufacturing.

EzyBiz India Consulting LLP provides end-to-end India Market Entry Consulting for South Korean companies planning to establish, invest, manufacture, trade or operate in India. Our support covers entry strategy, entity selection, incorporation, FDI and FEMA compliance, banking, taxation, GST, transfer pricing, payroll, accounting and continuing regulatory compliance.

Whether you are looking for India market entry for Korean companies, Korean company setup in India, South Korean company registration in India or establishment of an Indian subsidiary, the appropriate structure should be determined before capital is invested or incorporation begins.

Why South Korean Companies Are Expanding into India

Access to a Large Consumer and Industrial Market

India offers Korean businesses access to a substantial consumer market together with growing demand for automobiles, electronics, machinery, industrial equipment, technology, consumer brands and advanced services.

Foreign companies planning a long-term commercial presence can review our detailed guide on Setting Up Business in India.

Established Korean Business Ecosystem in India

South Korean companies are not entering an unfamiliar market. India already has a significant Korean corporate ecosystem covering major manufacturers, suppliers, financial institutions and service businesses.

According to the Embassy of India in Seoul, more than 670 large and small Korean companies are operating in India, and cumulative Korean investment in India since 1980 is around US$10 billion.

This existing ecosystem can be particularly valuable for Korean suppliers, component manufacturers and service providers that want to establish operations close to existing Korean or global customers.

Fresh India–Korea Economic Momentum in 2026

The India–Korea relationship received additional commercial momentum in 2026. The two countries agreed to strengthen industrial cooperation and work toward annual bilateral trade of US$50 billion by 2030.

Recent cooperation has expanded beyond established automotive and electronics ties into shipbuilding, critical minerals, clean energy, artificial intelligence, finance, steel supply chains and other strategic industries.

This creates new opportunities not only for major Korean conglomerates but also for Korean SMEs, component manufacturers, technology companies and specialist industrial suppliers.

India–South Korea Trade and Investment Relationship

Strong Bilateral Trade and Investment Base

India and the Republic of Korea have developed a substantial economic relationship supported by trade, manufacturing investment and long-established operations of Korean companies in India.

The India–Korea economic relationship has historically been particularly strong in automobiles, auto components, consumer electronics, telecommunications equipment, electrical machinery, steel and industrial products.

The Ministry of External Affairs bilateral brief on India–Republic of Korea relations provides official information on bilateral trade and investment flows.

Korea Plus and Investor Facilitation

India and South Korea established the Korea Plus initiative to facilitate Korean investment into India and assist Korean businesses with investment implementation and regulatory issues.

Korea Plus has been designed to support areas such as entry-route advisory, location assessment, regulatory clearances, strategic partnerships, site identification and investor issue resolution.

Korean businesses can therefore combine government facilitation with professional advice covering incorporation, taxation, FEMA, accounting and ongoing compliance.

India–Korea CEPA and Its Importance for Korean Businesses

Comprehensive Economic Partnership Agreement

The India–Korea Comprehensive Economic Partnership Agreement, or CEPA, was signed in 2009 and came into force on 1 January 2010.

CEPA covers trade in goods, services and other areas of economic cooperation. Korean companies importing products or components into India, exporting from India or establishing regional supply chains should evaluate whether their transactions can qualify for applicable CEPA benefits.

Official information on the agreement is available from the Department of Commerce, Government of India.

CEPA Upgrade Negotiations and Rules of Origin

India and South Korea have continued negotiations to upgrade CEPA. The 12th round of upgrade negotiations was held in New Delhi in May 2026, followed by the 13th round in Seoul in August 2026.

The latest negotiation history is available through the Republic of Korea’s Ministry of Trade, Industry and Resources CEPA portal.

Korean companies should not assume that all Korea-origin products automatically receive preferential duty treatment. Product classification, rules of origin, origin documentation and the applicable tariff concession must be verified for the particular goods being imported.

India Entry Structures Available to South Korean Companies

Wholly Owned Subsidiary in India

A Korean parent company seeking long-term ownership and operational control may establish an Indian private limited company as a Wholly Owned Subsidiary in India, subject to India’s applicable FDI framework and sector-specific conditions.

Where 100% foreign investment is permitted, the Korean parent can retain the intended economic ownership while the Indian subsidiary operates as a separate legal entity.

A WOS can generally undertake permitted commercial activities, hire employees, enter contracts, maintain Indian bank accounts and raise invoices in its own name.

Joint Venture with an Indian Partner

A Korean business may establish a Joint Venture in India where an Indian partner provides strategic advantages such as distribution, licences, technology, manufacturing infrastructure, customer relationships or market knowledge.

The parties should clearly document shareholding, management control, Board rights, reserved matters, funding obligations, intellectual property, technology transfer, deadlock provisions and exit rights.

Branch Office in India

A Branch Office in India is an extension of the Korean parent rather than a separately incorporated Indian company.

Its activities are restricted to those permitted under the applicable FEMA framework, and the tax and liability position differs substantially from an Indian subsidiary.

Liaison Office in India

A Liaison Office in India may be considered where the Korean company requires an Indian representative presence for communication, promotion, market research or coordination with customers and suppliers.

A Liaison Office cannot ordinarily undertake revenue-generating commercial activity in India.

Project Office in India

A Project Office in India may be relevant for Korean engineering, infrastructure, construction, industrial or project-based companies executing a specific qualifying Indian contract.

The Project Office is normally linked to the duration and scope of the particular project.

Which India Entry Structure Should a Korean Company Choose?

Wholly Owned Subsidiary vs Joint Venture

A wholly owned subsidiary generally offers a Korean parent greater ownership and operational control. A Joint Venture may be preferable where a strong Indian partner contributes material strategic value.

The decision should take into account the business model, FDI policy, intellectual property, customer relationships, technology transfer, capital requirements, governance, taxation and future expansion plans.

Subsidiary vs Branch, Liaison or Project Office

A subsidiary is a separate Indian company, while Branch, Liaison and Project Offices remain extensions of the Korean parent.

The structures differ in permitted activities, liability, taxation, foreign exchange regulation and long-term scalability. Korean businesses should therefore determine the appropriate route before preparing incorporation documents or committing investment.

Step-by-Step Process for a Korean Company to Set Up in India

Step 1 – India Entry and FDI Review

The first stage is to define the proposed Indian activities, products or services, investment amount, expected employees, customers, supply chain and location.

The applicable FDI route, ownership conditions, industry licences and business structure should then be reviewed.

Step 2 – Finalise Indian Entity and Korean Parent Documentation

Once the entry structure has been selected, the Korean parent company prepares the corporate approvals, shareholder information, director documents and other overseas documentation required for the Indian registration process.

EzyBiz provides complete Foreign Company Registration in India support for overseas investors.

Step 3 – Incorporation and Bank Account

Where the Korean company chooses an Indian subsidiary, the incorporation process generally covers company-name approval, Digital Signature Certificates, Memorandum and Articles, registered-office documentation, directors, subscribers and integrated statutory registrations.

After incorporation, the Indian company proceeds with corporate bank onboarding and KYC.

Step 4 – Capital Infusion, FEMA and Operational Setup

The Korean parent remits the agreed capital through permitted banking channels, after which the Indian company completes share allotment and applicable foreign-investment reporting.

GST, import-export, employment, accounting, payroll, factory or other sector registrations are then implemented based on the business model.

Documents Required from a South Korean Parent Company

Korean Corporate Documents

Depending on the proposed structure, documents may commonly include:

• Certificate or official extract evidencing incorporation of the Korean company;
• constitutional or charter documents;
• registered-office information;
• Board Resolution approving establishment of the India entity;
• Board Resolution approving investment and subscription;
• authorisation or Power of Attorney;
• details of the authorised representative;
• group shareholding structure; and
• ultimate beneficial ownership information.

Documents of Foreign Directors and Shareholders

Individual documentation may include passport, residential-address proof, photograph, email address, mobile number and other KYC information required for incorporation, banking or regulatory filings.

The name and address appearing across documents should be checked carefully before authentication to minimise MCA and bank queries.

Apostille and English Translation of Korean Documents

Korean documents required for Indian company incorporation may need notarisation and apostille in accordance with the applicable Indian corporate-law requirements.

Where a document is issued only in Korean, an appropriate English translation may also be required.

The foreign-document requirements should therefore be confirmed before notarisation or apostille so that Korean documents do not need to be authenticated more than once.

FDI and FEMA Compliance for Korean Investment in India

Automatic Route and Government Route

Foreign investment is permitted up to 100% under the Automatic Route in many Indian activities, subject to sectoral conditions and the applicable FDI framework.

Other activities may have foreign ownership limits, licence requirements or Government approval conditions.

Current FDI policy material can be reviewed through the Department for Promotion of Industry and Internal Trade.

Capital Remittance and Share Allotment

The Korean parent’s investment should be routed through permitted banking channels and supported by appropriate remittance, KYC and corporate records.

The Indian company should then complete the corporate procedures for issue and allotment of equity instruments within the applicable framework.

FC-GPR and Continuing FEMA Reporting

Where an Indian company issues eligible equity instruments to a Korean investor as Foreign Direct Investment, applicable reporting, including Form FC-GPR, must be completed within the prescribed timeframe.

Additional reporting may arise in relation to subsequent capital infusions, share transfers, downstream investment, foreign liabilities and assets or restructuring.

The relevant framework can be reviewed through the Reserve Bank of India foreign-investment reporting regulations.

EzyBiz provides dedicated FEMA and RBI Advisory Services for foreign-owned businesses.

Indian Bank Account and Capital Infusion

Bank KYC for Korean Shareholders and Beneficial Owners

Indian banks typically undertake detailed KYC of the Indian company, Korean parent, directors, authorised signatories and ultimate beneficial owners.

The bank may request the Korean group’s ownership chart, business profile, source of funds, expected transactions and authenticated corporate documentation.

Bank documentation should therefore be planned while incorporation is underway rather than only after the Indian company has been formed.

Receiving Investment from South Korea

The initial and subsequent equity investment from South Korea should be remitted through appropriate banking channels with correct remitter information and supporting documentation.

Capital receipt, share allotment, statutory records and FEMA reporting should be treated as one integrated process.

India–Korea DTAA, Corporate Tax and Transfer Pricing

India–Republic of Korea Double Taxation Agreement

India and the Republic of Korea have a Double Taxation Avoidance Agreement covering the allocation of taxing rights between the two countries.

The treaty should be reviewed for cross-border dividends, interest, royalties, technical or service arrangements, Permanent Establishment and other relevant income streams.

The current synthesised treaty text is available from the Income Tax Department of India.

Transfer Pricing for Korea–India Transactions

An Indian subsidiary may undertake transactions with its Korean parent or other associated enterprises involving goods, components, software, technology, management support, engineering services, royalties, cost allocations, loans or guarantees.

Applicable international transactions must be evaluated under India’s transfer-pricing provisions and supported by appropriate inter-company agreements and documentation.

EzyBiz provides Transfer Pricing Advisory Services in India including policy review, benchmarking, documentation and Form 3CEB support.

Repatriation of Profits and Cross-Border Payments

Profits may generally be repatriated through permitted mechanisms such as dividends and legitimate inter-company payments, subject to company law, tax, withholding, transfer-pricing, treaty and FEMA requirements.

Royalty, technical-service, software and management-service arrangements should be documented before payments begin rather than being formalised retrospectively.

GST, Customs and CEPA-Linked Trade

GST Registration and Indirect Tax

GST registration depends on the nature of supplies, turnover, location and other provisions of Indian GST law.

Manufacturing, trading, service and e-commerce businesses should evaluate their GST position before commencing taxable operations.

EzyBiz assists foreign-owned companies with GST Registration Services in India.

Official GST services are available through the GST Portal.

Imports from Korea, IEC and CEPA Origin Requirements

Korean companies importing machinery, automotive components, electronics, raw materials or other products into India should consider Import Export Code requirements, customs classification, valuation, import duties and product-specific regulations.

Where CEPA preferential tariff treatment is proposed, the applicable rules of origin and supporting origin documentation should also be confirmed.

Information on import-export registrations can be obtained through the Directorate General of Foreign Trade.

Employment, Korean Expatriates and Social Security

Hiring Employees in India

A Korean-owned Indian company may recruit Indian employees subject to applicable employment, payroll, tax and social-security requirements.

Payroll processes should be established before hiring begins and may involve salary computation, withholding tax, provident fund, employee state insurance, professional tax and other labour-related requirements.

Korean Expatriates and India–Korea Social Security Agreement

Korean nationals assigned to India should evaluate employment visa, tax residency, payroll, Permanent Establishment and social-security implications before commencing work.

India and South Korea have an operating Social Security Agreement. Depending on the assignment circumstances, qualifying detached workers may be able to rely on a Certificate of Coverage and the applicable treaty provisions.

Official information is available from the Ministry of Labour & Employment.

Key Opportunities for South Korean Companies in India

Automotive, EVs and Auto Components

Automotive manufacturing remains one of the strongest areas of India–Korea business cooperation.

Korean OEMs and their supplier ecosystems have created opportunities for component manufacturers, mobility technology companies, battery suppliers, engineering businesses and specialist industrial vendors.

Korean automotive suppliers evaluating Indian production can review our Manufacturing Setup in India services.

Electronics, Semiconductors and Advanced Technology

Korean businesses have substantial strengths in consumer electronics, telecommunications equipment, displays, semiconductors, components and advanced manufacturing.

India’s expanding electronics and semiconductor ecosystem creates opportunities for manufacturing, assembly, design, supply-chain localisation, testing, R&D and technical services.

Shipbuilding, Marine Engineering and Heavy Industry

Shipbuilding and maritime cooperation became a significantly more prominent part of the India–Korea economic relationship in 2026.

Korean businesses with capabilities in shipbuilding, marine systems, port technology, heavy engineering, steel fabrication and maritime logistics may evaluate both investment and strategic partnership opportunities in India.

Clean Energy, Batteries and Critical Minerals

India and South Korea are expanding cooperation in clean energy, energy resource security and critical minerals.

This can create opportunities for Korean companies involved in batteries, renewable-energy components, energy storage, EV supply chains, recycling, advanced materials and industrial technology.

K-Beauty, Consumer Brands and Digital Businesses

South Korean consumer brands, beauty companies, food businesses, gaming companies and digital platforms may follow a different India entry strategy from manufacturers.

Businesses may initially consider distributors, e-commerce or market-testing arrangements before committing to a full Indian entity. Product registration, labelling, customs, GST, consumer law and sector-specific regulations should be reviewed for the particular product category.

Choosing the Right Location in India

Manufacturing and Supplier Locations

Korean manufacturers should evaluate location based on customers, supplier clusters, industrial infrastructure, logistics, ports, airports, skilled labour, land, power and available state incentives.

Depending on the sector, Korean businesses may evaluate locations in Tamil Nadu, Maharashtra, Delhi NCR, Uttar Pradesh, Karnataka, Gujarat, Andhra Pradesh and other industrial regions.

Automotive and electronics suppliers should also consider proximity to existing anchor customers when selecting a manufacturing site.

Technology, R&D and Service Locations

Technology, engineering, finance and shared-service operations may consider Bengaluru, Hyderabad, Chennai, Pune, Delhi NCR, Mumbai and other major Indian talent centres.

The choice should be based on employee skills, compensation costs, office infrastructure, customer proximity and the functions that the Indian operation will perform.

Timeline, Cost and Implementation Planning

Typical India Setup Timeline

Where complete and properly authenticated Korean documents are available, an Indian subsidiary can often be incorporated within approximately one to three weeks, subject to company-name approval, MCA processing and regulatory queries.

The complete operating setup generally takes longer because bank onboarding, capital infusion, FEMA reporting, GST and other registrations follow incorporation.

Stage	Indicative Position
Entry structure and FDI review	Approximately 2–5 business days
Korean document preparation and apostille	Depends on document readiness
Indian company incorporation	Often approximately 1–3 weeks after complete documents are ready
Bank account onboarding	Depends on bank KYC
Capital infusion and FEMA reporting	Subject to applicable process and timelines
GST, IEC and operating licences	Depends on business activity

Cost and Common Causes of Delay

The total setup cost depends on the selected entity, authorised capital, Indian state, foreign directors and shareholders, apostille and translation requirements, banking, FEMA work and additional licences.

Common causes of delay include incomplete Korean documents, inconsistent English translations, apostille issues, unclear beneficial ownership, bank KYC queries and beginning incorporation before the FDI position is confirmed.

Common Mistakes Korean Companies Should Avoid

Assuming CEPA Automatically Reduces All Import Duties

CEPA can provide important trade benefits, but preferential customs treatment depends on the relevant tariff concession, product classification and rules of origin.

Korean businesses should therefore check CEPA eligibility product by product rather than assuming that Korean origin automatically results in reduced customs duty.

Treating Incorporation, Banking and FEMA as Separate Exercises

Another common mistake is completing incorporation first and only later considering bank KYC, capital infusion, foreign-investment reporting, transfer pricing and operational registrations.

Coordinating these activities from the beginning generally reduces delays and avoids inconsistent documentation across MCA, bank and FEMA records.

Frequently Asked Questions – Korean Companies Entering India

1. Can a South Korean company own 100% of an Indian company?
Yes, 100% foreign ownership is permitted in many sectors, subject to the applicable FDI policy, sectoral conditions and regulatory requirements.

2. What is the most common India entry structure for a Korean company?
An Indian private limited company structured as a wholly owned subsidiary is commonly considered for long-term commercial operations where 100% foreign investment is permitted. The appropriate structure depends on the business activity and objectives.

3. Does a Korean company need an Indian shareholder?
Not merely because it is a foreign investor. Where 100% foreign ownership is permitted, the intended beneficial ownership can generally remain with the Korean parent, subject to Indian company-law member requirements.

4. Does the Indian subsidiary need a resident director?
Yes. An Indian company must satisfy the applicable resident-director requirement prescribed under company law. Foreign nationals may also serve as directors subject to applicable requirements.

5. Do Korean corporate documents require apostille?
Foreign corporate documents used for Indian incorporation may require notarisation and apostille depending on the document and applicable MCA requirements.

6. Do Korean-language documents need English translation?
Where documents required for Indian filings are not in English, an appropriate English translation may be required.

7. Is RBI approval required for every Korean investment?
No. Investment in many sectors is permitted under the Automatic Route. Government or sectoral approval may apply depending on the activity and applicable regulatory framework.

8. What is FC-GPR?
FC-GPR is an applicable foreign-investment reporting form where an Indian company issues eligible equity instruments to a person resident outside India as FDI.

9. Does India have a trade agreement with South Korea?
Yes. The India–Korea Comprehensive Economic Partnership Agreement has been in force since 2010. Upgrade negotiations remain ongoing.

10. Can a Korean company claim CEPA benefits on imports into India?
Potentially, where the relevant product qualifies under the applicable tariff schedule and rules of origin. Eligibility should be confirmed for the specific product and transaction.

11. Is there a DTAA between India and South Korea?
Yes. India and the Republic of Korea have a Double Taxation Avoidance Agreement that should be reviewed for relevant cross-border income and Permanent Establishment issues.

12. Is transfer pricing applicable to a Korean-owned Indian subsidiary?
International transactions between the Indian company and its Korean parent or other associated enterprises may be subject to India’s transfer-pricing provisions.

13. Is there a Social Security Agreement between India and South Korea?
Yes. India and the Republic of Korea have an operating Social Security Agreement which may be relevant for qualifying employees assigned between the two countries.

14. Can Korean companies manufacture in India?
Yes, subject to the applicable FDI framework, industrial, environmental, factory, employment and sector-specific regulations.

15. Can a Korean company test the Indian market without incorporating immediately?
Depending on the business model, distributors, importers, e-commerce or other commercial arrangements may be considered before establishing an Indian subsidiary. Tax, PE, GST, customs and regulatory implications should first be reviewed.

16. How long does Indian subsidiary incorporation take?
A straightforward incorporation can often be completed within approximately one to three weeks after complete and properly authenticated documentation is available, subject to MCA processing and case-specific queries.

17. Can profits be repatriated to South Korea?
Profits and legitimate inter-company payments may generally be remitted through permitted mechanisms subject to tax, withholding, transfer-pricing, treaty, company-law and FEMA requirements.

18. Does EzyBiz support Korean companies after incorporation?
Yes. EzyBiz provides ongoing support covering FEMA, accounting, payroll, taxation, GST, transfer pricing, ROC compliance and other regulatory requirements.

How EzyBiz Supports South Korean Companies Entering India

End-to-End Korea-to-India Market Entry Support

EzyBiz India Consulting LLP assists South Korean businesses through the complete India-entry lifecycle, including:

• India market entry strategy and entity-selection advisory;
• Wholly Owned Subsidiary registration;
• Joint Venture structuring and incorporation;
• Branch, Liaison and Project Office advisory;
• Korean parent-company documentation review;
• apostille and English-translation guidance;
• company incorporation;
• FDI, FEMA and RBI advisory;
• bank-account opening assistance;
• capital infusion and share allotment;
• FC-GPR and other FEMA reporting;
• GST and Import Export Code support;
• India–Korea DTAA and international-tax advisory;
• transfer-pricing compliance;
• accounting and bookkeeping;
• payroll and employee compliance;
• ROC and corporate secretarial compliance;
• manufacturing and GCC setup support; and
• ongoing India regulatory compliance.

Our integrated approach enables Korean head-office teams to coordinate entity establishment, foreign investment, banking, taxation, accounting and ongoing compliance through one professional advisory team in India.

Related India Entry Services

• India Market Entry Consulting
• Setting Up Business in India
• Foreign Company Registration in India
• Wholly Owned Subsidiary in India
• Joint Venture Registration in India
• Branch Office in India
• Liaison Office in India
• Project Office in India
• FEMA & RBI Advisory Services
• International Tax Advisory Services
• Transfer Pricing Advisory Services
• GST Registration Services
• Manufacturing Setup in India
• Global Capability Centre Setup in India
• India Market Entry Services by Country

Reviewed By

CA Anil Agrawal, Founder, EzyBiz India Consulting LLP
Chartered Accountant with 20+ years of professional experience in India market entry, taxation, FEMA, international tax, transfer pricing and cross-border regulatory advisory.

Last Updated

September 2026

Disclaimer

The information provided on this page is intended for general informational purposes only and should not be construed as legal, tax, FEMA, investment, customs, accounting or regulatory advice.

The appropriate India market entry structure and applicable requirements for a South Korean company depend on the proposed business activity, sector, ownership and beneficial-ownership structure, investment amount, location, supply chain, employee model and actual conduct of operations.

India’s Foreign Direct Investment policy, FEMA and RBI regulations, company law, India–Korea CEPA provisions, customs requirements, taxation, transfer pricing, GST, employment regulations and sector-specific rules may change from time to time. CEPA tariff benefits also depend on the relevant product classification, tariff schedule, rules of origin and supporting documentation.

South Korean companies and investors should obtain professional advice based on their specific circumstances before incorporating an Indian entity, making an investment, importing goods, claiming CEPA benefits, appointing employees or commencing business operations in India.