How can South Koreans setup a company in India?

South Koreans looking to set up a company in India can follow a structured process that involves several steps and compliance with local regulations. Here’s a comprehensive guide outlining the necessary steps and requirements.

Steps to Set Up a Company in India

1. Determine the Type of Entity: South Koreans can choose from various types of business entities, including:
   • Wholly Owned Subsidiary: 100% ownership by the foreign parent company.
   • Joint Venture: Partnership with an Indian company.
   • Private Limited Company: Most common for foreign investments, allowing up to 100% Foreign Direct Investment (FDI) under the automatic route.
   • Branch Office: For conducting business activities as an extension of the foreign entity.
   • Liaison Office: For communication purposes without revenue generation.
   • Project Office: For executing specific projects in India.
2. Obtain Digital Signature Certificate (DSC): This certificate is mandatory for filing electronic documents with the Ministry of Corporate Affairs (MCA). It can be obtained from government-recognized certifying authorities.
3. Apply for Director Identification Number (DIN): Each director must obtain a DIN, which is a unique identification number required for all directors of the company.
4. Name Approval: Reserve a unique name for the company through the MCA portal. This involves submitting two proposed names and obtaining approval.
5. Prepare Incorporation Documents: Draft the Memorandum of Association (MoA) and Articles of Association (AoA). These documents outline the company’s objectives and internal regulations.
6. Incorporation Application: Submit the incorporation application using the SPICe+ form on the MCA portal. This form consolidates several previous forms into one, streamlining the process.
7. Payment of Registration Fees: Pay the necessary fees based on the authorized capital of the company.
8. Certificate of Incorporation: Upon approval of the application, the Registrar of Companies (RoC) will issue a Certificate of Incorporation, officially registering the company.
9. Tax Registrations: Apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department. Additionally, register for Goods and Services Tax (GST) if applicable.
10. Open a Bank Account: After obtaining the Certificate of Incorporation and PAN, open a bank account in the name of the company to facilitate financial transactions.

Legal Requirements

• Minimum Directors and Shareholders: A minimum of two directors is required, with at least one being a resident Indian. There must also be at least two shareholders.
• No Minimum Authorized Share Capital: There is no minimum capital requirement for setting up a private limited company.
• Compliance with FDI Regulations: Ensure compliance with the Foreign Direct Investment (FDI) policy, which allows up to 100% FDI in most sectors under the automatic route.

Timeline

The entire process of registering a company in India typically takes around 8-10 business days, although this may vary depending on the type of entity and the completeness of the submitted documentation.By following these steps and ensuring compliance with local regulations, South Koreans can successfully establish a business presence in India, tapping into one of the world’s largest and fastest-growing markets.

Here are some important government website links that can assist South Koreans in setting up a company in India:

1. Ministry of Corporate Affairs (MCA): This is the primary portal for company registration and related services in India. You can find information on incorporation, filing requirements, and other e-services.
   • MCA Incorporation
2. Director Identification Number (DIN) Application: This page allows you to apply for a DIN, which is required for directors of Indian companies.
   • DIN Application
3. Reserve Bank of India (RBI): The RBI provides guidelines on Foreign Direct Investment (FDI) and other regulations related to foreign investments in India.
   • RBI Notifications on Foreign Investment
4. Foreign Direct Investment Policy: This page contains detailed information on FDI policies, including entry routes and sector-specific regulations.
   • FDI Policy Circular
5. National Government Services Portal: This portal provides access to various services offered by the government, including those related to business registration and compliance.
   • National Government Services Portal

These resources will provide essential information and guidance for South Koreans looking to establish a business presence in India.