India Market Entry Services for South Korean Companies

India offers substantial opportunities for South Korean companies seeking to expand into new consumer markets, establish manufacturing operations, develop supplier networks, recruit technology professionals and diversify international supply chains. Korean businesses already have a significant presence in India across automobiles, electronics, steel, machinery, engineering, financial services and consumer products.

The India–Republic of Korea economic partnership gained further momentum in 2026 through cooperation in semiconductors, electric mobility, shipbuilding, critical minerals, artificial intelligence, clean energy and advanced manufacturing. These developments create opportunities for Korean multinational groups, industrial suppliers, technology companies and small and medium-sized businesses considering investment in India.

However, India market entry for South Korean companies involves more than company incorporation. Investors must evaluate Indian company law, the Foreign Direct Investment (FDI) framework, FEMA and RBI compliance, banking requirements, taxation, transfer pricing, India–Korea CEPA, employment regulations and continuing statutory obligations.

EzyBiz India Consulting LLP provides integrated India Market Entry Consulting Services for South Korean companies. Our Chartered Accountant-led team assists with business-structure selection, subsidiary incorporation, joint ventures, foreign investment, corporate banking coordination, GST, international taxation, transfer pricing, accounting, payroll and ongoing regulatory compliance.

We support Korean manufacturers, automotive suppliers, engineering companies, electronics businesses, consumer brands and service providers seeking a structured and compliant approach to establishing operations in India.

India–South Korea Strategic and Economic Partnership

Established Bilateral Trade and Investment Relations

India and the Republic of Korea maintain a Special Strategic Partnership supported by extensive trade, manufacturing investment, technology cooperation and business relationships.

South Korean companies have established a significant industrial and commercial presence in India. Their operations range from large manufacturing investments to component suppliers, engineering businesses, technology companies and consumer brands.

The Embassy of India in Seoul publishes bilateral trade and investment information relevant to Korean companies evaluating the Indian market.

India–Korea Summit and Economic Developments in April 2026

The April 2026 visit of Republic of Korea President Lee Jae Myung to India strengthened bilateral economic cooperation. The two countries announced initiatives supporting industrial partnerships, investment, technology, energy security and resilient supply chains.

India and South Korea expressed an ambition to increase annual bilateral trade to approximately US$50 billion by 2030. This is a bilateral objective, not a guaranteed forecast.

The countries also agreed to strengthen cooperation in shipbuilding, artificial intelligence, critical minerals, semiconductor technology, clean energy, steel and other strategic industries.

Further information can be found in the official India–Republic of Korea Joint Strategic Vision.

Korea Plus and Investment Facilitation

The Korea Plus initiative was established to facilitate Korean investment in India and assist Korean companies with investment implementation and business establishment issues.

Government investment-facilitation initiatives can complement specialist professional services involving company incorporation, foreign-investment reporting, corporate taxation, accounting, payroll and regulatory compliance.

Korean investors should distinguish between government investment facilitation and the professional responsibilities involved in incorporating, financing and operating an Indian legal entity.

Why South Korean Companies Are Expanding into India

Access to Consumer and Industrial Markets

India provides opportunities across passenger vehicles, automobile components, electronics, machinery, industrial equipment, telecommunications, consumer products, healthcare, energy and digital services.

Depending on the products and commercial objectives, a Korean company may initially appoint Indian distributors, establish a representative arrangement or incorporate a local company for direct operations.

Our Business Setup Services in India address the broader establishment requirements for overseas investors.

Manufacturing and Supply-Chain Localisation

Korean manufacturers may consider India for component production, industrial assembly, regional sourcing, product testing, engineering support and export-oriented manufacturing.

Potential benefits must be assessed alongside supplier availability, quality standards, local manufacturing costs, customs requirements, product certification, infrastructure and applicable state incentives.

Companies planning industrial facilities can review our Manufacturing Setup in India services.

Technology, Engineering and Global Capability Centres

South Korean enterprises may establish Indian engineering centres, technology development operations, research facilities, finance support teams and Global Capability Centres.

These arrangements require clear decisions regarding the Indian entity’s functions, employment responsibilities, intellectual-property ownership, service agreements, transfer pricing and compliance framework.

Our Global Capability Centre Setup advisory covers relevant operational considerations.

India–Korea Comprehensive Economic Partnership Agreement

India–Korea CEPA in Force Since 2010

The India–Republic of Korea Comprehensive Economic Partnership Agreement (CEPA) was signed on 7 August 2009 and entered into force on 1 January 2010.

The agreement covers trade in goods, services and other aspects of economic cooperation. It can be relevant for Korean businesses importing machinery, automobile components, electronics or industrial products into India, as well as companies developing bilateral supply chains.

Official information is available through the Indian Department of Commerce and the Korea Customs Service.

CEPA Upgrade Negotiations in 2026

India and South Korea resumed negotiations to upgrade their existing CEPA framework following high-level bilateral discussions in April 2026.

The 12th round of negotiations was held in New Delhi from 25–27 May 2026. The 13th round took place in Seoul from 19–21 August 2026.

The negotiations addressed market access, goods, services, rules of origin, supply chains, strategic industrial cooperation and other trade-related issues.

However, proposals under negotiation should not be treated as legally effective concessions until the relevant agreements and implementation procedures have been completed.

Rules of Origin and Preferential Import Duties

CEPA does not automatically provide reduced customs duties for every product manufactured or exported from South Korea.

Preferential treatment depends on the applicable tariff classification, concession schedule, product-specific Rules of Origin, documentary requirements and customs compliance.

Indian importers claiming preferential rates must consider applicable Rules of Origin procedures and the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020, commonly known as CAROTAR.

Before making a CEPA claim, a Korean manufacturer and its Indian importer should establish the correct product classification, originating status, documentation and applicable duty rate.

Entry Structures Available to South Korean Companies

Wholly Owned Subsidiary in India

A South Korean parent company may establish an Indian private limited company as a wholly owned subsidiary where 100% foreign investment is permitted for its proposed business activities.

The Indian subsidiary is a separate legal entity and can generally carry out permitted commercial activities, enter contracts, recruit employees, operate bank accounts and issue invoices.

An Indian private limited company normally requires at least two members and two directors. Where a Korean corporate group intends complete beneficial ownership, a properly structured nominee shareholding arrangement may be considered to meet the membership requirement.

At least one director must satisfy the applicable India-residency requirement under the Companies Act, 2013.

For further details, visit our Wholly Owned Subsidiary Registration Services.

Joint Venture with an Indian Partner

A Korean company may establish a joint venture with an Indian partner where the local partner contributes manufacturing infrastructure, market access, distribution networks, industry knowledge, licences or other strategic capabilities.

The joint venture agreement should address shareholding, financing, governance rights, intellectual-property ownership, technology licensing, reserved matters, profit distribution, deadlock resolution and exit mechanisms.

Our Joint Venture Registration Services support the corporate and regulatory aspects of establishing joint ventures in India.

Branch Office, Liaison Office and Project Office

South Korean companies may also evaluate a Branch Office, Liaison Office or Project Office, subject to applicable FEMA and RBI regulations.

A Branch Office is an extension of the Korean parent and can undertake specified permitted activities. A Liaison Office is generally restricted to permitted representative functions and cannot carry on ordinary revenue-generating commercial activities in India.

A Project Office may be appropriate for eligible engineering, construction or other project-specific contracts.

Unlike an incorporated Indian subsidiary, these offices generally operate as extensions of the foreign company.

Choosing the Appropriate India Entry Structure

Wholly Owned Subsidiary versus Joint Venture

A wholly owned subsidiary generally offers greater ownership control and flexibility for a Korean parent seeking an independent long-term commercial presence.

A joint venture may be more suitable where an Indian partner contributes significant commercial capabilities or where the parties wish to share investment and operational responsibilities.

Subsidiary versus Branch, Liaison or Project Office

For Korean companies intending to manufacture products, conduct extensive trading operations, deliver services or recruit employees independently, an Indian subsidiary may be the more appropriate legal structure.

Branch, Liaison and Project Offices have different activity restrictions, regulatory requirements, taxation and liability consequences.

Structure	Typical purpose	Indian legal status
Wholly Owned Subsidiary	Long-term business and operational establishment	Separate Indian company
Joint Venture	Business with an Indian strategic partner	Usually separate company if incorporated
Branch Office	Specified permitted activities of the Korean parent	Extension of parent
Liaison Office	Representation and coordination	Extension of parent
Project Office	Execution of qualifying Indian projects	Extension of parent

The final selection should consider FDI eligibility, intended activities, commercial contracts, funding, taxation, ownership control, intellectual property and long-term expansion requirements.

Distributor or Market-Testing Arrangement Before Incorporation

Some Korean consumer-product businesses, technology providers and manufacturers may initially test demand through distributors, local importers, commercial partners or permitted e-commerce arrangements.

Such arrangements require review of contractual rights, tax exposure, customs, GST, product regulation, permanent establishment risk and responsibility for customer transactions.

Market testing should not be confused with permission to conduct unrestricted business in India without an appropriate legal and tax structure.

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

Step 1: Business Activity, FDI and Location Assessment

Determine the proposed Indian products, services, customer base, manufacturing requirements, location, investment amount and management structure.

Review the applicable FDI route and sector restrictions before determining the entity structure.

Step 2: Korean Corporate Documents and Indian Incorporation

Obtain the Korean parent company’s corporate approvals, incorporation documents, shareholder information, authorised signatory details and director documentation.

The incorporation process generally involves Digital Signature Certificates, name reservation, company constitutional documents, SPICe+ and linked MCA filings, and issuance of the Certificate of Incorporation, PAN and TAN.

EzyBiz provides Foreign Company Registration in India assistance covering relevant company-law and regulatory procedures.

Step 3: Banking, Capital Subscription and Operational Registrations

After incorporation, the Indian company arranges bank onboarding, receives foreign investment through permitted banking channels, completes share allotment and undertakes applicable FEMA reporting.

GST registration, Importer Exporter Code, labour registrations, factory licences and other operational approvals should be considered according to the actual business model.

Documents Required from the South Korean Parent Company

Korean Company Registration and Corporate Approvals

Documents commonly required for the establishment of a Korean-owned Indian subsidiary may include:

• Certificate or official extract evidencing Korean company registration;
• constitutional or charter documents;
• registered-office particulars;
• board resolution approving the Indian investment;
• authorisation or Power of Attorney;
• authorised representative details;
• corporate ownership chart; and
• ultimate beneficial ownership information, where applicable.

The exact requirements depend on the entity structure, applicable MCA rules and bank documentation procedures.

Foreign Director and Shareholder Documentation

Documents for Korean or other foreign directors and shareholders may include passports, residential-address evidence, photographs, identification information, contact details and statutory declarations.

Documentation should be checked for consistency of names, addresses, identities and authorised signatures before submission.

Apostille and Translation of Korean Documents

South Korea and India participate in the Hague Apostille framework. Korean documents required for Indian company incorporation may need notarisation, apostille and appropriate English translation in accordance with applicable Indian corporate-law requirements.

Documents issued in Korean should be reviewed for certified English-translation requirements before authentication.

The Hague Conference on Private International Law provides information on participating jurisdictions.

FDI, FEMA and RBI Requirements for Korean Investment

Automatic Route, Government Approval and Ownership Conditions

India permits up to 100% foreign investment under the automatic route in many business activities, but the permissible foreign ownership percentage and applicable route depend on the sector and transaction.

Some activities remain subject to sectoral limits, government approval, licensing or other conditions. Investor identity and relevant beneficial-ownership or control arrangements may also affect approval requirements under applicable rules.

Regulatory information can be reviewed through the Department for Promotion of Industry and Internal Trade.

Foreign Capital Remittance, FC-GPR and FLA Reporting

Foreign capital should be received through permitted banking channels and supported by appropriate remittance, investor KYC and corporate documentation.

Where an Indian company issues equity instruments qualifying as FDI, Form FC-GPR is generally required within 30 days from the date of issue of the instruments.

Annual Foreign Liabilities and Assets reporting, generally due by 15 July where applicable, and reporting for share transfers, downstream investment or other transactions may also become relevant.

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

Corporate Bank Account and Funding of Indian Operations

Bank KYC for Korean Shareholders and Beneficial Owners

Indian banks generally require detailed identification and verification of the Indian company, Korean parent, intermediate holding companies, directors, authorised representatives and ultimate beneficial owners.

Requirements may include authenticated corporate documents, ownership charts, business plans, expected transaction information and source-of-funds documentation.

Bank approval and activation remain subject to the bank’s internal verification procedures.

Equity Investment, Working Capital and Inter-Company Loans

Korean parent companies may fund their Indian operations through permitted equity contributions and eligible financing arrangements.

Inter-company loans should be assessed separately under the applicable debt, external commercial borrowing, company-law and tax frameworks.

The India business plan should provide for capital expenditure, initial operating costs, employee expenses, potential losses and working-capital requirements.

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 that is relevant to cross-border income and allocation of taxing rights.

The treaty should be examined for dividends, interest, royalties, technical services, permanent establishment exposure and other applicable income categories.

Treaty benefits depend on the applicable domestic-law provisions, treaty eligibility, relevant documentation and transaction facts.

Further information is available through the Income Tax Department.

Transfer Pricing, Technology Payments and Profit Repatriation

Korean-owned Indian subsidiaries may undertake transactions with their Korean parents involving components, machinery, management services, engineering support, software, technology licences, royalties, cost allocations, financing and guarantees.

Applicable international transactions between associated enterprises require arm’s-length pricing and appropriate documentation. Form 3CEB reporting may be relevant where reportable international transactions arise.

Dividend distributions, royalties, service fees and other legitimate payments to South Korea must be reviewed for company-law, withholding-tax, treaty, transfer-pricing and FEMA compliance.

Our Transfer Pricing Advisory Services cover documentation, benchmarking and regulatory reporting.

GST, Customs and CEPA-Linked Import Compliance

GST Registration, IEC and Import Documentation

Indian GST registration depends on the company’s taxable activities, turnover, place of supply and other applicable statutory conditions.

Businesses importing goods into India should determine their Importer Exporter Code requirements, customs classifications, tax obligations and documentation procedures.

Our GST Registration Services support foreign-owned businesses. Official import-export information is available from the Directorate General of Foreign Trade.

CEPA Customs Benefits, Origin Evidence and Product Certification

Korean companies importing automotive components, machinery, electronics, cosmetics or industrial goods should verify applicable customs duties and import regulations.

CEPA benefits require assessment of the relevant tariff schedule, product-specific Rules of Origin, evidence of origin and applicable Indian customs requirements.

Depending on the product, additional requirements involving Indian standards, technical certifications, legal metrology, labelling or sector regulators may apply.

For example, an electronics importer may need to evaluate BIS-related requirements, while a cosmetics importer should examine the applicable Indian cosmetics regulatory framework.

Employment, Korean Expatriates and Social Security

Local Hiring, Employment Visas and Payroll

A Korean-owned Indian company may employ Indian personnel subject to applicable payroll, income-tax withholding, provident fund, employee state insurance, employment and state-level labour requirements.

South Korean nationals assigned to India should evaluate the appropriate immigration status, income-tax residency, salary arrangements and Indian payroll obligations.

Employment contracts and secondment agreements should clearly document employer responsibilities, compensation, benefits and assignment conditions.

India–Korea Social Security Agreement and Certificate of Coverage

India and South Korea have an operating Social Security Agreement relevant to eligible employees temporarily assigned between the two countries.

Qualifying detached workers may be entitled to specified social-security exemptions where the applicable conditions are met and a valid Certificate of Coverage is obtained.

The Korean National Pension Service and India’s Employees’ Provident Fund Organisation are relevant authorities for the applicable agreement procedures.

Korean employers should review individual eligibility, assignment duration and supporting documentation before determining the applicable contribution treatment.

Key Industries and Opportunities for Korean Companies

Automotive, Electric Vehicles and Component Manufacturing

Korean automotive manufacturers and supplier groups have established significant operations in India. Opportunities include auto components, EV technology, battery systems, tooling, precision engineering and automotive electronics.

Suppliers should consider proximity to customers, manufacturing standards, import duties, local content requirements and relevant product certifications.

Semiconductors, Electronics and Advanced Technology

Korean businesses have substantial expertise in semiconductors, electronics, displays, telecommunications and advanced manufacturing.

India offers potential opportunities for electronics assembly, semiconductor-related supply chains, research, engineering, testing and technology services, subject to applicable regulatory and commercial considerations.

Shipbuilding, Critical Minerals, Clean Energy and Heavy Industry

India–Korea cooperation in shipbuilding, shipping and maritime logistics gained further prominence in 2026.

Korean businesses may evaluate opportunities involving shipbuilding technology, marine equipment, steel, industrial engineering, energy storage, batteries, advanced materials and clean-energy infrastructure.

The appropriate India entry structure should reflect project duration, customer requirements, investment scale and the applicable sector-specific conditions.

Location Selection and Market Entry for Korean Consumer Brands

Manufacturing Locations and Korean Supplier Ecosystems

Korean manufacturers may evaluate locations in Tamil Nadu, Maharashtra, Gujarat, Karnataka, Uttar Pradesh, Andhra Pradesh, Delhi NCR and other industrial regions.

Location selection should consider suppliers, anchor customers, transportation infrastructure, labour availability, utilities, land costs, regulatory approvals and state incentives.

Technology and shared-service companies may consider Bengaluru, Hyderabad, Chennai, Pune, Delhi NCR and other relevant talent centres.

K-Beauty, Consumer Electronics, Food and Digital Brands

Korean cosmetics, beauty, food, gaming, entertainment and consumer technology businesses may require a different India entry approach from industrial manufacturers.

Initial market testing through distributors or import partners may be appropriate in some cases, subject to product approvals, customs, GST, labelling requirements, intellectual-property protection and consumer regulations.

Direct-to-consumer and e-commerce models should also be reviewed for applicable Indian tax, regulatory and operational requirements.

Timeline, Cost and Continuing Compliance

Typical Incorporation and Operational Setup Timeline

Where complete and appropriately authenticated Korean documents are available, incorporation of a straightforward Indian subsidiary may often be completed within approximately one to three weeks, depending on MCA processing, name approval and regulatory queries.

The operational setup generally requires additional time for banking, capital infusion, foreign-investment filings, GST, payroll, employment and other registrations.

Stage	Indicative planning position
Entry strategy and FDI assessment	Approximately 2–5 business days for a straightforward initial review
Korean documentation and apostille	Depends on document readiness and authentication requirements
Indian company incorporation	Often approximately 1–3 weeks after complete documents are available
Bank onboarding	Subject to the bank’s KYC and approval process
Capital infusion and FEMA reporting	Subject to applicable banking and statutory timelines
GST, IEC and operational licences	Depends on the proposed business activity

These are indicative planning estimates, not guaranteed statutory processing periods.

Setup Costs and Annual Compliance Obligations

The overall establishment cost depends on the structure, capital, selected state, foreign shareholder documentation, director arrangements, registered office, professional services and required regulatory approvals.

Continuing compliance may include statutory audit, ROC filings, corporate income-tax returns, GST, payroll, FEMA reporting, transfer-pricing requirements and accounting.

Our Accounting and Bookkeeping Services provide ongoing financial support to foreign-owned businesses.

Frequently Asked Questions for South Korean Companies

Can a South Korean Company Own 100% of an Indian Subsidiary?

Yes, in many Indian sectors, subject to applicable FDI restrictions and conditions. The Indian company must also meet the Companies Act requirements relating to minimum members, directors and other corporate obligations.

Does a Korean-Owned Indian Company Need a Resident Director?

Yes. Indian company law requires every company to have at least one director who meets the applicable India-residency requirement.

Is RBI Approval Required for Every Korean Investment?

No. Eligible investments in many sectors are permitted under the automatic route. However, government approval, sectoral restrictions, investor-related conditions and applicable reporting requirements must be checked for the specific investment.

Can Korean Companies Claim CEPA Benefits on Indian Imports?

Potentially, where the relevant products qualify under the applicable tariff concessions, Rules of Origin and customs documentation requirements. Korean origin alone does not guarantee preferential customs duties.

How Long Does It Take to Set Up a Korean Subsidiary in India?

A straightforward incorporation may be completed within approximately one to three weeks after complete documentation is available, but banking, FEMA reporting and operating registrations may require additional time.

How EzyBiz Supports South Korean Companies Entering India

Integrated Korea-to-India Incorporation and Regulatory Support

EzyBiz India Consulting LLP assists South Korean companies throughout the India market-entry lifecycle.

Our services include:

• India market entry and business-structure advisory;
• wholly owned subsidiary incorporation;
• joint venture structuring and registration;
• branch, liaison and project office advisory;
• Korean corporate-document review;
• apostille and English-translation guidance;
• FDI, FEMA and RBI compliance;
• bank account opening assistance;
• capital remittance and share allotment coordination;
• FC-GPR and other applicable FEMA reporting;
• corporate taxation and India–Korea DTAA advisory;
• transfer pricing and Form 3CEB compliance;
• GST and import-export registration support;
• accounting, bookkeeping and statutory audit;
• payroll and employee compliance;
• ROC and corporate secretarial compliance; and
• manufacturing and Global Capability Centre setup advisory.

Our team comprises Chartered Accountants, Company Secretaries and associated professionals, including professionals with Big Four experience.

Contact Our India Market Entry Advisory Team

Whether your South Korean company is planning manufacturing operations, supplier development, a technology centre, a wholly owned subsidiary or a joint venture, EzyBiz can assist with structuring and compliance requirements.

Mobile: +91 98992 17778

Email: anil@ezybizindia.in

WhatsApp: Connect with Our India Entry Experts

Related Services

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

Reviewed By: CA Anil Agrawal, Founder, EzyBiz India Consulting LLP. Over 20 years of professional experience in taxation, regulatory compliance, India market entry, FEMA and international business advisory.

Last Updated: November 2026

Disclaimer: This article is intended for general informational purposes and does not constitute legal, investment, taxation, customs, FEMA or regulatory advice. The appropriate structure and applicable obligations for South Korean investors depend on the proposed activities, sector, ownership and beneficial ownership, investment amount, location and transaction facts. FDI policy, FEMA and RBI regulations, company law, India–Korea CEPA provisions, customs requirements, GST, taxation, employment rules and other regulations may change. CEPA tariff benefits depend on the relevant tariff schedule, product classification, Rules of Origin and supporting evidence. Professional advice should be obtained before incorporating an Indian entity, investing, importing goods or commencing business operations.