Private limited company · wholly owned subsidiary
Approval: MCA SPICe+ online incorporation · post-facto RBI reporting
An Indian company under the Companies Act. In automatic-route sectors no prior approval is needed; foreign investment is reported to RBI after funds arrive. It can manufacture, sell and serve customers, so it is the most common choice for Korean companies.
Can and can't do
Manufacturing and processing
Unlike a branch, it can manufacture; land and environmental permits are separate.
Source: india-briefing.com · checkedSelling and invoicing Indian customers
Contracts and GST invoices in the Indian company's name.
Source: india-briefing.com · checkedHiring staff and sponsoring visas
Comes with PF and ESIC registrations.
Source: adullamcorp.com · checkedPaying dividends to the Korean parent
India–Korea treaty caps dividend withholding at 15%.
Source: cleartax.in · checked100% parent ownership
Allowed in automatic-route sectors; capped sectors need a JV.
Source: india-briefing.com · checkedAll directors from Korea
At least one director must stay in India 182+ days in the financial year.
Source: setindiabiz.com ·Incorporating with one shareholder
Needs 2+ shareholders and 2+ directors; often the parent plus a nominee or affiliate.
Source: patronaccounting.com ·Small-company relief
Subsidiaries are excluded however small, including Korean subsidiaries.
Source: beaconfiling.com ·RBI/MCA steps & deadlines
Source: patronaccounting.com ·
Source: statura.in ·
Source: patronaccounting.com ·
Source: patronaccounting.com ·
Source: treelife.in ·
Source: treelife.in ·
Source: adullamcorp.com · checked
Source: patronaccounting.com ·
Documents
- Parent: English registry extract, business licence, articles, board resolution (investment, directors, representative)
- Directors/individual shareholders: passport, address proof (usually within 2 months), photo
- Power of attorney for the corporate representative
- Registered office: lease or owner's NOC plus a recent utility bill
- Korean documents: notarised translation plus apostille
Tax
Taxed as a domestic company: 22% base under the concessional regime (about 25.17% with surcharge and cess; check 2026 surcharge changes), otherwise 25% or 30% by turnover. From 1 April 2026 the Income-tax Act, 2025 and the 'tax year' apply.
Source: taxaj.com · checked
Costs
Timeline
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Open Adullam Property →Recent cases
Reported cases plus illustrative examples within real ranges; examples are labelled.
Announcing about USD 15.5bn of investment in India by 2032, Hyundai said it will set up a dedicated entity to source, coordinate and execute group investments, including in local partners.
Read source →Hyundai Capital converted its Indian advisory company into a finance company, received an RBI NBFC licence in March 2026 and launched in late August.
Read source →G-Dragon's agency reportedly plans an India branch and an Indian subsidiary, starting with concert demand research.
Read source →Illustrative case: a supplier sets up a manufacturing company near Chennai, appointing the local plant manager as resident director.
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