Story of a Big Player from Gangnam - Chapter 492
Chapter 492: Forming a company in India – Part 1
Gun-Ho stopped by GH Mobile in Jiksan Town before heading to Dyeon Korea in Asan City.
When he arrived there, President Song told Gun-Ho that Chrysler finally placed a product order. They ordered three types of gasket products.
“Did you receive the product drawings?”
“Yes, we did. The research center is reviewing them right now. It seems there is no problem.”
“Did they make a high volume of order?”
“Not for now, but according to their order request, they will increase the number of product orders once they are satisfied with the quality of our products.”
“Hmm, I see.”
“I want to share some workload with GH Parts Company in China that President Min-Hyeok Kim is running. From now on, once we receive a product drawing from our client, and if we see the product order wouldn’t bring much revenue to us, I will toss the business to his factory in China.”
“Hmm, okay. That’s fine. We are still maintaining our existing clients with a good number of product orders, aren’t we?”
“Yes, we are. Most of our clients constantly increase their volume of product orders once they realize the good quality of our products. They also appreciate that we have a very low defect rate.”
“Our monthly sales revenue is still less than 7.5 billion won, isn’t it?”
“Right, but we are getting close to 7.5 billion won. We made 7.2 billion won last month.”
“Hmm, okay.”
“Well, if you don’t have anything else, I will get back to my work.”
“As a matter of fact, I don’t worry about GH Mobile’s business at all since I know you are handling it very well, Mr. President Song.”
“Thank you.”
Gun-Ho went to Dyeon Korea that afternoon.
When Mr. Adam Castler heard that Gun-Ho was in the office, he came to the president’s office with Mr. Interpreter Lee.
“Here is the contract to transfer the ownership of the sales company in China.”
“Haha. You already got Dingding’s signature here as a witness of the transaction.”
“Yes, sir.”
After Mr. Adam Castler signed the contract, Gun-Ho also signed it.
“Since the contract is completed with all necessary signatures, please have Dingding update the sales company’s business registration with the name of the new owner.”
“I need to receive the money first.”
“We will use Dyeon Korea’s funds in the reserve in acquiring the sales company. Please have the accounting team proceed with it.”
Gun-Ho called for the accounting manager—Mr. Myeong-Sook Jo.
“Please write this down.”
Manager Jo picked up a pen and paper.
“We are acquiring a company that is registered with China. We will spend 700 million won in total to acquire that company. Let me break down the cost. The initial investment funds to establish the company was 100 million won; operating right cost 200 million won, and the purchasing price of storage is 400 million won. Send 700 million won to Dingding’s company, and categorize that company as an investment asset for Dyeon Korea. When you send the funds to China, please make sure that you report it with the appropriate authority. Mr. Adam Caslter has all the relevant documents about the acquisition. Collect the documents from him and make a file with them.”
“Yes, sir.”
A moment later, Manager Jo brought an approval form for the fund transfer of 700 million won to Gun-Ho. Since the amount was substantial, Gun-Ho and Mr. Adam Castler signed the approval form simultaneously.
After Accounting Manager Jo left the office, Mr. Adam Castler and Interpreter Lee were also walking out of the office. Gun-Ho asked Mr. Interpreter Lee to stay.
“You will soon leave for India. Do you know anybody in India who you might get some help or advice from?”
“A colleague whom I used to work with in my previous company is in India right now. He used to work under my supervision at that time. He is now a branch manager of that company in the India location. I talked with him the other day over the phone. He said that working in India is doable. It is totally up to me how well I could adjust myself to the new environment.”
“Is the company in Delhi?”
“Yes, it is.”
“Once you arrive in India, get some help from your friend to find a place to stay. You will probably need to stay in a hotel for the first few days before you could find your home.”
“Yes, sir.”
“Since you speak English fluently, I’m sure that you will do just fine. But I worry a little bit because you are going there by yourself.”
“Don’t worry about it, sir.”
“Do you have a child?”
“Yes, I have one son and one daughter. My son is a college student, and he is currently serving in the military. My daughter is in the U.S. studying.”
“I guess you are supporting them financially, right?”
“I have a condo to live in, and I also have some leftover severance pay that I received from my previous employer. I can still manage.”
“Where is your condo located?”
“It’s in the Mokdong condo complex in Seoul. It’s 30 pyung large.”
“To start, you will carry a one-month living expense with you when you leave for India, in cash. Once you get there, open a bank account for the company. Then we will send the initial investment funds to that account. It will be 100,000 dollars.”
“Understood, sir.”
“With the initial investment funds, get an office and hire a local person who can speak English.”
“Yes, sir.”
“You will need to find storage as well. We need a space to store raw materials that Dyeon Korea will send there.”
“By the way, sir, I have a question for you.”
“What is it?”
“It’s about the company that I’m supposed to establish in India. It’s not a branch office, but it’s going to be a subsidiary company there, right?”
“A branch office cannot participate in the manufacturing process, right?
“That’s correct. Also, only a company, that has been doing its business for more than five years, can have a branch office abroad. In other words, GH Mobile can have a branch office overseas since Mulpasaneop had been in the business for a long time; however, Dyeon Korea cannot since it is a newly formed company.”
“Then form a subsidiary company.”
“I asked my old colleague in India about the requirement of forming a company there. He said that India requires having at least one initial director who is either an Indian national or a foreign person who has lived in India for the past six months.”
“Hmm, we will have three initial directors—Director Dong-Chan Kim, Manager Lee, and one Indian. For the third initial director, you might want to observe the person who you would hire as the first employee, and see if he is trustworthy.”
“Yes, sir.”
“Once you get an office, lease a storage space, and register the company with the Indian government, I will send Director Kim there as a business trip. He will have a round to visit Korean companies there—S Group, Mandong Company, and Egnopak.”
“Sounds good, sir.”
“If the initial funds are not sufficient, we will send additional funds later.”
“Okay, sir.”
“You will need to take Dyeon Korea’s documents with you such as a certified copy of its real estate’s registration, business registration, articles of incorporation, etc. Take the notarized English translated versions of them. You will need them.”
“Yes, sir.”
“It won’t be easy in the beginning.”
“I’m ready, sir.”
“Once I see a clear positive result, I will give you an opportunity to promote.”
“Thank you. I will do my best.”
