A Korean company can open a project office in India to carry out a specific contract with an Indian customer, usually with general permission where funding conditions are met, or apply through an authorised dealer bank for a liaison office or branch office. A liaison office needs three years of profits and net worth of USD 50,000; a branch office needs five years and USD 100,000. Each office must register with the Registrar of Companies within thirty days.
- Document route
- Korean notary, then apostille from the Ministry of Foreign Affairs
- Time difference
- IST is 3h30 behind Korea all year (no daylight saving)
- Law
- FEMA BO/LO/PO Regulations 2016
- Applied to
- AD Category-I bank (Form FNC)
Branch & Liaison Office from South Korea: how it works
We look at the contract or business plan to decide which form fits. An engineering, procurement and construction contract with an Indian buyer often suits a project office, which can be opened if the contract is funded and the bank's conditions are met. A liaison office suits representation and coordination with Indian customers, while a branch can carry out specified income-earning activities such as export, import or technical services. We collect the Korean company's certificate of corporate registry, audited accounts and board resolution, notarised and apostilled in Korea, and file the application through the bank.
After approval, the office files Form FC-1 with the Registrar of Companies, obtains a PAN and opens a bank account. A project office or branch is taxable in India on income attributable to it and must file Indian returns, maintain accounts and, where required, register for GST. Annual activity certificates are filed with the bank. When the project ends, the office must be closed with an auditor's certificate and clearance of tax liabilities, and the remaining funds can then be repatriated to Korea.
What clients in South Korea should know
- A long construction or installation project in India can be a permanent establishment of the Korean company under the treaty, even without a formal office.
- Korean audited accounts in Korean need certified English translations for the bank application.
- Payments under the Indian contract should flow through the project office's account so that FEMA and tax records match.
Step by step from South Korea
Video consultation
A call at a time that suits South Korea, after we have read your documents.
Documents signed in South Korea
Korean notary, then apostille from the Ministry of Foreign Affairs
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in South Korea where needed.
The full guide
This page covers what changes when you are in South Korea. For the law, the documents and the step-by-step procedure, read our main page on Branch & Liaison Office, or see all services for clients in South Korea and the Doing Business in India practice area.
Questions from clients in South Korea
Is a project office the same as a branch?
No. A project office exists for one specific contract and closes when it ends; a branch carries on continuing activities.
Can the project office remit surplus funds to Korea during the project?
Intermittent remittances are possible with supporting documents and tax clearance through the bank.
Does a liaison office pay Indian tax?
It should not have taxable income, but it must file returns and statements, and its activities are scrutinised for permanent establishment risk.