How to form a company in South Korea from India
By Dr. Anil Gupta, Global Expansion Advisor · Updated October 2026 · About 14 minutes to read
Most Indian investors form a jusik hoesa (stock company). If you invest ₩100 million or more for at least 10% of the voting shares, you first notify the investment to KOTRA or a foreign exchange bank, remit the capital, register the company at the court registry, take a business registration certificate from the tax office, then register as a foreign invested company. Below ₩100 million you can still incorporate, on the ordinary foreign exchange route. In India, file Form ODI with your bank before any money leaves.
Which route are you on?
Pick where the founder or signing director will be based. The rest of the page highlights what changes for you.
Four ways to be present in Korea
Two options create a Korean company. Two extend an Indian company that already exists. Compare them on what you actually plan to do in Korea.
| Feature | Jusik hoesaStock company | Yuhan hoesaLimited company | BranchOf the Indian parent | Liaison officeNon trading |
|---|---|---|---|---|
| Legal status | Separate Korean company | Separate Korean company | Part of the Indian company | Part of the Indian company |
| Can trade | Yes | Yes | Yes, for the parent | No revenue activity |
| Owner liability | Limited to shares | Limited to contribution | Parent fully liable | Parent fully liable |
| Governance | Board or a single director if capital is under ₩1 billion; shares can be issued to investors | Members and directors; simpler, more private | Representative in Korea registered at court | Head of office only |
| FDI registration | Possible at ₩100 million | Possible at ₩100 million | Foreign exchange report instead | Not applicable |
| Suits | Most subsidiaries, especially with future investors | Wholly owned subsidiaries wanting simplicity | Indian companies serving Korean contracts directly | Research before a launch |
Korean law also offers the yuhan chaegim hoesa (limited liability company) and partnership forms, which foreign investors rarely use. Individuals living in Korea can register a sole business, which carries personal liability.
Two investment routes, two paper trails
This is the route choice that matters in Korea. The company is incorporated the same way at court on both routes, but the investment filings, the certificates you end up with and what they unlock are different.
What it involves
- Investment notification to KOTRA (Invest Korea) or a foreign exchange bank before remitting
- Capital remitted through the receiving bank with a certificate of payment
- Registration as a foreign invested company, usually within 60 days of payment
- Unlocks the D8 investor visa route and eligibility to apply for incentives
- Gives a clear record for repatriating dividends and capital
What it involves
- A report under the Foreign Exchange Transactions Act to a foreign exchange bank
- The same court registration and tax office business registration
- No foreign invested company certificate
- No basis for a D8 investor visa
- Suitable for small service companies with no plan to relocate staff
Decide before you remit. The notification has to precede the payment, so changing routes after the money has landed means extra filings and delay.
The document pack, by who reads it
Three different offices check your papers. Group the pack by reader so nothing is collected twice or missed.
Investment notice
- Investor passport or parent certificate of incorporation
- Foreign investment notification form
- Power of attorney if an agent files
- Planned amount, shares and business activity
Incorporation file
- Articles of incorporation
- Promoter and director appointment minutes
- Directors' acceptance and identity papers
- Bank certificate of capital payment
- Seal registration or notarised signatures
Operating file
- Office lease contract
- Corporate registry certificate
- Shareholder register
- Foreign invested company certificate, on route A
- Representative's identification
If an Indian company is the investor
- Certificate of incorporation, memorandum and articles
- Board resolution approving the investment and naming the signatory
- Ownership chart down to the individuals who control it
- Notarisation, apostille and Korean translation
- Form ODI acknowledgement and unique identification number from your bank
Our legal document checklist helps you gather the Indian side.
From notice to business number in eight steps
Cards with a teal border apply only on the FDI route. Scroll sideways to follow the sequence.
Choose the form and activity
Pick a jusik hoesa, yuhan hoesa or branch and check that the activity is open to foreign investment.
Secure a Korean office
Sign a lease suitable for your activity. The tax office will ask for it at business registration.
File Form ODI
Complete ODI with your authorised dealer bank and obtain the unique identification number before remitting.
Notify the investment
File the foreign investment notification with KOTRA or a foreign exchange bank. On route B, file the foreign exchange report instead.
FDI routeRemit the capital
Send funds to the receiving bank and obtain the certificate of capital payment for the registry.
Register at the court
File the incorporation with the court registry, pay the registration tax and register the corporate seal.
Get the business number
Apply to the tax office for a business registration certificate within 20 days of starting business.
Register the foreign invested company
Register with the agency that took your notice, usually within 60 days of payment, then open the corporate account.
FDI routeSwipe or use the arrows to see all eight steps.
How long it really takes
Invest Korea illustrates about two weeks for the Korean steps once documents are ready. In practice, plan four to six weeks end to end: two to three weeks for Indian notarisation, apostilles and ODI, about two weeks in Korea, and extra time for bank onboarding.
A court certificate creates the company. It does not grant a visa, open a bank account or replace business registration.
Founder in Korea or founder in India
Ownership rights are the same. The practical work is not. Your choice at the top of the page highlights your column.
| Question | Founder living in Korea | Founder living in India |
|---|---|---|
| Signing documents | Registers a personal seal after alien registration and signs locally | Notarised and apostilled signatures or powers of attorney |
| Representative director | Can act directly, which banks prefer | Allowed by law; consider a Korea based co director for banking |
| Sending capital | Investment still treated as foreign if funds come from abroad | ODI with an authorised dealer bank, then remittance to the receiving bank |
| Bank account | In person interviews are straightforward | Expect a visit or a local representative |
| Visa | Existing status must allow business activity | D8 needs a foreign invested company on route A |
| Indian obligations | Depend on Indian tax residence | ODI, APR and FLA apply in full |
Snags Indian investors hit, and how to clear them
₩100 million read as a fee
Founders think they must pay it to the government or that it is a legal minimum.
Treat it as working capital that unlocks route A. If you do not need FDI status, route B lets you start smaller.
Names and amounts do not match
The notice, the Indian remittance and the registry show different investors or sums.
Fix one investor name, amount and purpose and use it on ODI, the notice and the remittance.
The office is rejected
A shared desk or virtual address may not satisfy the tax office for your activity.
Confirm the premises with your Korean adviser before signing the lease.
The 60 day window is missed
Founders stop at court registration and forget foreign invested company registration.
Diarise the deadline on the payment date and prepare the papers in parallel with registration.
The bank stalls
New companies with directors abroad face longer due diligence on owners and source of funds.
Prepare a business plan, contracts and source of funds evidence. Our cross border banking support can help.
The Indian side is skipped
Remitting before ODI or missing the APR creates FEMA issues in India.
Complete ODI first and calendar the APR by 31 December and FLA by 15 July.
Money, time and the duties that follow
Keep three numbers apart: the capital you invest, the taxes and fees you pay to set up, and the running costs of the first year.
Share capital for route A. It stays in the company and is not a fee.
Of paid in capital, plus local education tax. Can be tripled in the Seoul metropolitan overcrowding area.
Four national bands, plus local income tax of one tenth of the national tax.
Standard rate on most supplies; exports generally zero rated.
The compliance calendar in Korea
| Within 20 days of starting business | Business registration at the tax office |
| Usually within 60 days of payment | Foreign invested company registration on route A |
| Every month | Withholding tax on salaries and fees, with social insurance contributions |
| Quarterly cycle | VAT returns for corporations |
| Within three months of year end | Corporate tax return, then local income tax |
| Whenever details change | Registry updates and reports on changes to the foreign investment |
Back in India
- Form ODI before remitting, under the RBI overseas investment directions
- Annual Performance Report by 31 December
- FLA return to RBI by 15 July
- Korean income reported in India, with treaty relief
Official sources checked October 2026: Invest Korea on business forms and FDI thresholds, incorporation procedure and company types. Confirm current tax and fee amounts before filing.
Support where the two countries meet
Route and structure
We help you choose route A or B and the right form, and compare Korea with other Asian hubs on cost and tax.
India side
We prepare the ODI file with your authorised dealer bank and keep APR and FLA dates on track.
Korean filings
We coordinate the notice, court, tax office and bank steps with licensed Korean professionals. Our entity solutions cover the full setup.
36 questions, grouped by topic
Start with a topic tab, or choose All 36 FAQs at the end to see every question.
Basics
Can an Indian start a company in South Korea?
Yes. Korean law lets foreign individuals and foreign companies own 100% of a Korean company in most sectors. A small list of sectors is closed or capped under the Foreign Investment Promotion Act, so check your activity first.
Which company type do foreign investors use most?
The jusik hoesa, a stock company, is the standard choice and the form Korean banks and customers know best. The yuhan hoesa, a limited company, suits closely held subsidiaries that do not plan to issue shares widely.
Where is a Korean company registered?
Incorporation is registered at the commercial registry of the competent district court for the head office. After that the company applies to the local tax office for a business registration certificate.
How long does company formation in South Korea take?
Invest Korea illustrates about two weeks for the standard Korean steps once the documents are ready. Preparing apostilled papers in India and completing ODI usually adds two to three weeks before that.
Is there a minimum capital?
Korean company law sets no meaningful minimum for a stock company. The figure people quote, ₩100 million, is the threshold for foreign direct investment status, not a legal minimum to incorporate.
Can one person own and run the company?
Yes. A single shareholder can form a jusik hoesa. With capital below ₩1 billion, one director is enough, so a sole founder can be the only shareholder and the representative director.
Is there a federal or provincial choice of incorporation?
No. South Korea has one national Commercial Act and one registry system. The meaningful route choice is between the foreign direct investment route and the ordinary foreign exchange route, explained above.
Routes and FDI
What counts as foreign direct investment in Korea?
Generally an investment of at least ₩100 million per foreign investor that buys 10% or more of the voting shares, or that gives real influence over management. It is notified to KOTRA or a foreign exchange bank before the money arrives.
Is the ₩100 million a government fee?
No. It is share capital that belongs to the company and can be used for rent, salaries and other business costs once the company is set up. The government fees are much smaller.
Can I invest less than ₩100 million?
Yes. You can still incorporate a Korean company, but the investment is reported under the Foreign Exchange Transactions Act instead of being registered as FDI. You lose the foreign invested company certificate and the basis for an investor visa.
What is the foreign invested company registration?
After the capital is paid and the company is incorporated, a qualifying company registers as a foreign invested company with the agency that took the original notice, usually within 60 days of payment. The certificate supports visas, incentives and later remittances.
Should an Indian company open a branch instead?
A branch lets the Indian company trade in Korea directly, but the parent carries all liabilities and the branch follows a foreign exchange report rather than FDI registration. Most investors who want a lasting presence choose a subsidiary.
Can a liaison office earn revenue?
No. A liaison office may only do non revenue work such as market research, quality checks and contact building for the parent. It receives a tax identification number, not a full business registration.
Founders abroad
Do I need to live in Korea to own a company?
No. Shareholders can live anywhere. You will need a Korean office, someone who can sign and receive documents, and a plan for the bank account, which is usually easier with a person in Korea.
Must the representative director be Korean?
Korean law sets no nationality or residence requirement for directors. In practice, banks and some filings are smoother with a representative who has a Korean address or alien registration, so many investors appoint one.
Can the whole process be done from India?
Most of it can, using powers of attorney, notarised and apostilled documents and a Korean agent. Bank account opening and some identity checks may still need a visit or a representative in Korea.
Does the company give me a Korean visa?
Not automatically. The D8 corporate investor visa generally needs a registered foreign invested company with at least ₩100 million invested. Companies on the ordinary route do not provide that basis. See our immigration and visa assistance.
How do Indian residents send the capital?
Through their authorised dealer bank after filing Form ODI. Individuals invest under the Liberalised Remittance Scheme limit of USD 250,000 a year. Remittances above ₹10 lakh in a financial year can attract TCS, which is adjusted later against tax.
Can I manage the Korean company from India?
You can, but keep tax residence in mind. If key decisions are taken in India, the Indian tax department may argue the company is managed from India. Board minutes and decision making should match the structure you intend.
Documents
What documents does an individual investor need?
A passport copy, the investment notification form, notarised and apostilled signature or power of attorney, the articles of incorporation, the office lease and the bank certificate of capital payment.
What does an Indian parent company need?
Its certificate of incorporation, constitutional documents, a board resolution approving the investment and naming the signatory, and ownership details. These are usually notarised, apostilled and translated into Korean.
Do Indian documents need an apostille?
Usually yes. India and South Korea are both parties to the Apostille Convention, so an apostille from India's Ministry of External Affairs generally replaces consular legalisation. Confirm the format with the registry or your Korean agent first.
Is a Korean office lease required?
Yes. The tax office asks for a lease when it issues the business registration certificate. Some activities need a dedicated space, so check before signing a shared or virtual arrangement.
Does the company need a seal?
Korean companies register a corporate seal with the court registry and use it on contracts, bank papers and filings. Foreign individuals without a Korean seal usually sign notarised documents instead.
Tax and cost
What are the government costs to incorporate?
Mainly registration and licence tax of 0.4% of paid in capital plus local education tax, with small court and certificate fees. The tax can be tripled for companies formed in the Seoul metropolitan overcrowding control area.
What corporate tax rates apply in 2026?
For tax years from 2026 the national rates are 10% up to ₩200 million of taxable income, 20% up to ₩20 billion, 22% up to ₩300 billion and 25% above, plus local income tax of one tenth of the national tax.
Does Korean VAT apply from the start?
VAT at 10% applies to most supplies of goods and services, and exports are generally zero rated. A corporation files VAT on a quarterly cycle once it is registered.
Are tax incentives available for foreign owned companies?
Some projects in high technology fields or special zones qualify for incentives, but foreign ownership alone does not. Eligibility depends on the industry, location and size of investment.
How does the India Korea tax treaty help?
It limits Korean withholding tax on dividends, interest and royalties paid to India and provides relief from double taxation. To claim the treaty rate, the Indian recipient provides residence evidence to the Korean payer.
What does Comply Globally charge for Korea?
Comply Globally does not publish a fixed South Korea fee because the scope varies with the route and structure. You get a written quote after a free consultation, with government and third party fees shown separately.
After registration
What has to happen after court registration?
Apply for business registration at the tax office within 20 days of starting business, register as a foreign invested company if eligible, open the corporate bank account and set up bookkeeping, withholding and VAT filings.
When is the corporate tax return due?
Within three months after the end of the financial year, with the local income tax return following soon after. Interim prepayments apply from the second year in most cases.
What if the company hires staff?
It must withhold income tax monthly and enrol employees in national pension, health insurance, employment insurance and industrial accident insurance. Written employment contracts are required. Our HR solutions team can help.
How Comply Globally helps
Can Comply Globally handle both the Indian and Korean sides?
Yes. Comply Globally prepares the ODI file with your bank and coordinates the Korean steps with licensed local professionals, so the investor names, amounts and dates match across both countries.
Can Comply Globally help me choose between Korea and another Asian hub?
Yes. The team compares cost, tax, banking and visa options for your plan. Start with our comparison of Japan, Singapore, Hong Kong and South Korea.
Will Comply Globally track Korean and Indian deadlines?
Comply Globally can keep one calendar for Korean tax, VAT and investment updates together with your Indian APR and FLA dates.
Your Korea launch checklist
South Korea rewards investors who decide the route first. After that, the steps are predictable: one consistent file, notice before money, court before tax office, and the duties that start once you trade.
For every investor
- Check the activity is open to foreign investment
- Choose jusik hoesa, yuhan hoesa or branch
- Sign a suitable Korean office lease
- File Form ODI before remitting
- Register at court and take the business number
Route A: ₩100 million or more
- Notify KOTRA or a foreign exchange bank first
- Remit to the receiving bank and keep the certificate
- Register the foreign invested company within the deadline
- Plan the D8 visa if someone will relocate
Route B: below ₩100 million
- File the foreign exchange report with your bank
- Accept there is no investor visa basis
- Keep remittance records for later repatriation
- Review the route again if you raise capital
Whichever route you take, diarise the APR by 31 December and the FLA return by 15 July from the first year, and keep Korean VAT and corporate tax dates in the same calendar.
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