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Korea Business and Tax Compliance
Your India – Korea Bridge
Garudamudra is the one-step solution for us where Korean companies can tap into Indian markets and Indian companies smoothly operate in Korea. Our team is led by our Chartered Accountant and deals with incorporation, taxes and regulatory requirements on both sides allowing for one point of contact to handle all your cross border needs.
1. Doing Business in India Made Easy- For Korean Clients
- Market Entry Mapping – Support through ‘Korea plus’ / Invest India, Roadmap for NSWS approvals and state specific local approvals.
- Entity Type- Subsidiary, Branch, Liaison or Project Office in India with full stack registrations via SPICe+ & AGILE-PRO-S.
- Operational setup – HR & payroll setup, GST, Import Export Code (IEC), Shops & Establishment, industry and environment-related permits etc.
2. Foreign Compliances (Korea & India)
- Korea: Business registration at district tax office, VAT recording at 10%, quarterly filing with advance/final submission by the 25th-day deadlines + Corporate income tax return within three months of fiscal year end.
- Payroll & Withholding: Coordinating withholding tax and social insurances (NPS, NHIC, Employment Insurance) with local partners.
- India: FDI/FEMA filings DTAA analysis for India–Korea, PE risk assessment and TP documentation.
3. Advisory & Consulting
- Cross-Border Tax Structuring: Utilizing India–Korea DTAA, PE risk minimization and inter-company pricing planning.
- Finance Reporting: Consolidated reporting packs based on K-IFRS / Ind AS consolidation, monthly MIS and cash-flow report.
- Customs & Supply Chain: Establishing import incentives and planning tax credits (GST in India; VAT credits in Korea).
4. Startup & Fast-Track Services
- Korea Setup – Establish local corporation branch or liaison office, FDI notifications, bank account and office lease assistance.
- India Setup for Korean Promoters / Suppliers – Quick approvals through NSWS, factory & shop licence, trade IEC.
5. Korea-Focused Taxation Management
- Corporate Income Tax (CIT) – Annual return would otherwise be due within three months of fiscal year end, except for extension options.
- VAT – Quarterly basis with payment and returns due by the 25th of the month following.
- Documentation & e-Filings – Credit Notes, Boe, Hometax filing, Withholding tax return, Local Surcharges & Municipal Levies as may be applicable.
Transparent Pricing (Indicative)
| Package | Scope (Illustrative) | Fee (USD) |
|---|---|---|
| Korea Company/Branch Setup | FDI notification, incorporation, tax/business registration, bank a/c support | 3,000 – 7,000 |
| VAT Compliance (per filing) | Books tie-out, return prep, filing & payment support | 300 – 600 |
| CIT – Annual | Tax computation, schedules, return filing; extension support | 2,500 – 5,000 |
| Payroll & Social Insurance | Salary structuring, filings (NPS/NHIC/EI), year-end adjustments | 25 – 40 / employee / month |
| India–Korea Cross-border Pack | DTAA, PE, TP memo; intercompany agreements; compliance calendar | 2,000 – 4,000 |
Why Opt for Garuda Mudra on Korea–India Routes
- CA Led/Cross Border First – There will be a senior CA in every assignment, covering local(Korea) and India Side responsibilities.
- Regulatory Compliance – We refer to government websites (KOTRA/NTS Korea; NSWS/MCA/RBI India), we also have compliance calendars.
- Transparent Pricing & SLAs – Scopes at fixed-fee, filing checklists and documented deliverables.
- Audit-Prepared Files – Workpapers in the format ofregulator templates (Hometax, MCA SPICe+/AGILE-PRO-S).
Questions & Answers
Q: How can Garuda Mudra help my South Korean company to start operations in India?
Yes. We take care of the entire process: from entity selection, incorporation to full registrations (SPICe+, AGILE-PRO-S), HR & payroll setup and approvals via Invest India/NSWS.
Q2: What taxes must a Korean company pay when operating locally?
Most companies in Korea are required to register for VAT and submit a preliminary/final tax return on the 25th of the month following each business quarter, with a rate of 10%. Company tax is required to be paid within three months of year end (but may be extended). All reports and complaints are submitted through Hometax.
Q3: Do you also manage India-side FDI/FEMA and tax compliance for Korean investors?
Absolutely. We streamline your FDI / FEMA filings, DTAA positions, PE risk assessments and transfer pricing documentation while you carry on with your business.
Q4: Are your fees in USD or KRW?
Flat fees We have provided the flat fee in USD for ease of reference, but we can quote and invoice in KRW. All taxes and government fees are clearly billed on your invoice.
Q5: Can you help with social insurance and payroll in Korea?
Yes. We handle salary structure, filings of NPS, NHIC and EI as well as year-end adjustment.
Q6: What if my Indian company desires to open up a branch or liaison office in Korea?
Our Korea Desk will handle your local incorporation, FDI notices, bank account set up, office rent support as well as the formalities of VAT/CIT filing for your branch/liaison office.