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ChoosingCompany, branch or liaison office?
Revenue: company, LLP or branch. Research only: liaison office. Awarded project: project office. Manufacturing requires a company.
Source: india-briefing.com · checkedChoosingWhat do Korean firms usually choose?
Mostly a private limited company owned by the Korean parent; it can do everything and pays dividends.
Source: adullamcorp.com · checkedChoosingBranch vs company: key difference?
A branch is part of the parent with limited activities, no manufacturing or retail, taxed at 35%. A company is separate, broader, from 22%.
Source: rbi.org.in · checkedChoosingWhen does an LLP make sense?
Small services without outside investors. Low upkeep but 30% tax and no shares for investors or options.
Source: calcguru.in ·ChoosingWhat to watch in a JV?
Sector caps, fair-value issuance and the SHA: deadlock, disputes, transfer limits and reserved matters in writing.
Source: india-briefing.com · checkedChoosingCan we own 100%?
Yes in 100% automatic sectors, but you need two shareholders—often the parent plus a nominee or affiliate.
Source: patronaccounting.com ·ChoosingCan a liaison office become a company?
No direct conversion; set up a company and close the LO, which takes months.
Source: rbi.org.in · checkedCost & timeGovernment cost of incorporation?
Name ₹1,000; nil filing fee up to ₹15 lakh capital; stamp duty by state (₹720–₹6,020 at ₹10 lakh); DSC ₹1,500–₹2,500 each.
Source: patronaccounting.com ·Cost & timeHow long does it take?
10–15 working days to certificate; 4–8 weeks including bank, capital and FC-GPR; allow 1–2 weeks for apostille.
Source: adullamcorp.com · checkedCost & timeIs there a minimum capital?
No statutory minimum for companies or LLPs; choose a realistic amount. No filing fee up to ₹15 lakh authorised capital.
Source: patronaccounting.com ·Cost & timeHow long for a branch or liaison office?
RBI approval typically 6–8 weeks, up to 10–20; then FC-1 (₹6,000) within 30 days.
Source: globallawexperts.com ·Cost & timeWhat does an LLP cost?
Name ₹200; FiLLiP ₹500–₹5,000 up to ₹25 lakh; state stamp duty. About ₹6,000–₹18,000 all-in for small LLPs.
Source: calcguru.in ·Cost & timeAnnual running costs?
Government fees ₹600–₹1,200; accounting ₹15,000–₹50,000+; audit from ₹5,000–₹20,000, rising with size and TP.
Source: patronaccounting.com ·DocumentsWhat does the Korean parent provide?
English registry and licence, articles, board resolution, POA—all notarised and apostilled.
Source: statura.in ·DocumentsWhere do we get an apostille?
From MOFA or a designated agency; no Indian consular step is needed. Notarise first, then apostille.
Source: statura.in ·DocumentsHow many directors? Koreans only?
Two or more directors, one staying 182+ days in India per financial year; others can be in Korea.
Source: setindiabiz.com ·DocumentsNo resident director available?
Use an expatriate or local executive; year one is pro-rated. Define liability if using a nominee.
Source: setindiabiz.com ·DocumentsWhat are DSC and DIN?
DSC is a digital signature; DIN is a director number issued with SPICe+ (up to three).
Source: patronaccounting.com ·DocumentsHow do we choose a name?
Apply for up to two names avoiding clashes; valid 20 days. Using the parent's name needs a board resolution.
Source: patronaccounting.com ·Capital & RBIWhen and how to send capital?
After the account opens, each shareholder remits the declared amount; agree the SWIFT format and collect FIRC and KYC.
Source: adullamcorp.com · checkedCapital & RBIWhen is FC-GPR due?
Allot within 60 days of receipt and file within 30 days of allotment on FIRMS; register the entity master first.
Source: treelife.in ·Capital & RBIWhat if FC-GPR is late?
₹7,500 + 0.025% × amount × days, doubling yearly, capped at 100%; beyond three years, compounding. No waiver.
Source: treelife.in ·Capital & RBIDo we need prior RBI approval?
Companies in automatic sectors report afterwards; branches and LOs need RBI approval; POs may use general permission.
Source: rbi.org.in · checkedCapital & RBIChinese or Hong Kong shareholders?
Up to 10% non-controlling land-border ownership is automatic since March 2026; above needs approval. Offices from China or Hong Kong need prior RBI permission.
Source: taxguru.in ·Capital & RBICan the parent lend instead?
Yes under ECB rules, eased in February 2026; related-party loans must be at arm's length with a default 3-year maturity. LLPs qualify too.
Source: roedl.com ·TaxWhat is the company tax rate?
22% base under the concessional regime (~25.17% effective), otherwise 25% or 30%; check 2026 surcharge changes.
Source: taxaj.com · checkedTaxBranch tax rate?
35% plus 2%/5% surcharge and 4% cess; no extra tax on remitting profits.
Source: khaitanco.com ·TaxTax on dividends to Korea?
Capped at 15% under the treaty, with a TRC and Form 10F.
Source: cleartax.in · checkedTaxWhat changed with the new tax law?
From 1 April 2026 the Income-tax Act, 2025 uses a single tax year and new section numbers; MAT is 14% and final.
Source: khaitanco.com ·TaxTransactions with the Korean parent?
Arm's-length pricing and Form 3CEB where applicable (tax due 30 November); consider the 15.5% IT safe harbour.
Source: taxaj.com · checkedTaxIs GST registration required?
AGILE-PRO-S starts the application, but an officer must approve it; plan before trading.
Source: patronaccounting.com ·After setupEasy-to-miss deadlines after setup?
30 days: auditor and office proof; 60 days: share certificates; 180 days: INC-20A; plus FC-GPR.
Source: adullamcorp.com · checkedAfter setupIs director KYC annual?
From 31 March 2026, every three years by 30 June; ₹5,000 and deactivation if late.
Source: patronaccounting.com ·After setupDoes a small subsidiary need an audit?
Yes—subsidiaries are excluded from small-company relief.
Source: beaconfiling.com ·After setupAnnual filings for foreign-owned companies?
FLA by 15 July, plus AOC-4, MGT-7 and the tax return.
Source: treelife.in ·After setupAnnual duties for a liaison office?
AAC by 30 September, FC-3/FC-4 and a nil tax return.
Source: globallawexperts.com ·After setupHow do we close an entity?
Companies go through winding up or strike-off; offices need audit, tax clearance and RBI reporting. Adullam has handled liquidations.
Source: adullamcorp.com · checkedOffice & moreCan we incorporate without an office?
Yes, with a virtual office, moving later; file INC-22 within 30 days if needed. See Adullam Property for offices.
Source: property.adullamcorp.com · checkedOffice & moreCan offices buy property?
Branches may buy property needed for business; liaison offices only lease. See Adullam Property's essentials.
Source: rbi.org.in · checkedOffice & moreWhich city?
Go where customers and suppliers are; Korean firms cluster in Delhi NCR, Chennai, Pune and Bengaluru. Stamp duty and incentives vary by state.
Source: g-enews.com ·Office & moreWhat's different about GIFT City?
An IFSC in Gujarat for finance, insurance and funds, with its own regulator and tax regime.
Source: businessinsurance.com ·AI answers are based on information researched by Adullam. For important legal, tax, HR and other decisions, please always confirm with a specialist.
Questions and answers are kept for 90 days and are sent to an AI provider outside Korea (Anthropic, USA) to generate answers. Please do not enter personal details such as names or phone numbers. Privacy Policy