Liaison vs Branch vs Subsidiary: Best India Entry Route for Korean Businesses

Korean companies entering India choose between three structures. The right one depends on whether you are exploring the market, running specific projects, or building a full operating business.

Liaison Office

The lightest option. It can promote the parent and gather market intelligence but cannot earn income, and is funded by remittances from Korea. Needs RBI approval — ideal for testing the Indian market.

Branch Office

Can carry out specified commercial activities — imports/exports, consultancy, and executing contracts — and can earn income. It is an extension of the Korean parent (liability flows back) and is taxed at higher foreign-company rates.

Subsidiary (Private Limited Company)

A separate Indian company with the most flexibility — full operations, limited liability, domestic tax rates, and clean repatriation. The choice for serious, long-term market entrants.

Quick Comparison

• Earn income? Liaison: No · Branch: Yes · Subsidiary: Yes.
• Liability: Liaison/Branch → parent · Subsidiary → ring-fenced.
• Approval: Liaison/Branch → RBI · Subsidiary → FDI route.
• Best for: Liaison → research · Branch → projects/trade · Subsidiary → full business.

Statura advises Korean firms on the right route and executes subsidiary, liaison office, and FEMA compliance.