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BUSINESS SETUP

FDI COMPANY

 

A corporation which is established in Korea by a foreign individual or a foreign company shall be recognized as 'Foreign Direct Investment’ company and be governed by Foreign Investment Promotion Act and the Commercial Act.

FOREIGN BRANCH

 

A ‘Foreign Branch’ operates a business that generates profits in Korea, but is not locally incorporated and is not recognized as foreign direct investment. Headquarters and their foreign branches are treated as a single legal entity.

LIAISON OFFICE

An ‘Liaison Office’ does not carry out business that generates profits in Korea, but instead undertakes a non-sales function such as market research, R&D etc.

INCORPORATION OF FOREIGN-INVESTED COMPANIES and ESTABLISHMENT OF KOREAN BRANCH OFFICES

 

We help foreign investors and foreign companies (Head Offices) with the incorporation of foreign-invested companies (subsidiary) and the establishment of branch offices (branch or liaison office). 

 

외국인투자회사설립 및 외국회사의 한국지점설치


저희 부서는 외국인투자자(개인 또는 회사)의 외국인투자회사설립 및 외국회사의 한국지점(영업소 또는 연락사무소) 설치업무를 지원하고 있습니다.

 

INCORPORATION of FDI(Foreign Direct Investment) COMPANY / 외국인 직접투자회사 설립

 

A corporation which is established in Korea by a foreign individual or a company shall be regarded as a Korean corporation and be governed by the laws such as the Foreign Investment Promotion Act and the Commercial Act. 
Incorporation procedures are summarized as follow:


   • Notification of investment to a foreign exchange bank
   • Remittance of investment capital
   • Registration of incorporation to the court
   • Business registration to tax office
   • Opening a permanent bank account of Korean entity and tranfer of invested capital. 
   • Registration of foreign-invested company(if necessary)

 

 

외국인직접투자회사의 설립절차를 요약하면 다음과 같습니다: 


   • 외국인직접투자신고 
   • 외국인직접투자자금의 송금
   • 법인설립등기
   • 사업자등록
   • 법인통장개설 및 투자자금의 계좌이체
   • 외국인투자회사등록 

 

 

 

A minimum amount of investment would be KRW 100 million, if you want to register the incorporated company as a "Foreign-Direct-Invested company" according to the Foreign Investment Promotion Act. Such registration is required when the incorporated company applies for the tax exemption which is given to a foreign-direct-invested company which involves in high technology businesses or is located in a free trade zone, and etc. 


Therefore, if your company to be incorporated in Korea is not eligible for the tax exemption, the company will be taxed in the same way as local Korean companies are taxed. And, if you don't need the registration of a foreign-invested company, there would be no minimum amount of investment so you can incorporate a company with any investment amount you decide, i.e. KRW 10 million, KRW 50 million, and etc. 


Another reason for the registration of a foreign-invested company is the application of an investment visa. So, if you need to apply for an investment visa(D-8 VISA) after incorporation, such registration is required.

 

Generally, once the investment capital is carried in and required documents are received, it takes about 7 working days to finish the incorporation of a company.
 

 

외국인투자회사의 설립을 위해 필요한 자본금은 외국인투자촉진법에 따른 외국인투자회사등록을 위해서는 최소 1억원 이상을 투자해야 합니다.

외국인투자회사 등록은 조세감면혜택 (첨단기술업종이나 경제자유구역입주기업 등에 해당하는 경우에만 주어지며 일반적인 외국인투자회사는 조세감면혜택의 대상이 아닙니다)을 받고자하는 경우나 투자비자를 신청하는 경우에 필요합니다.

 
따라서 조세감면대상이 아닌 경우나 투자비자의 신청 등이 필요하지 않는 경우에는 1억원 미만의 금액 (예를 들면 1천만원, 5천만원 등)으로도 얼마든지 회사설립이 가능합니다.


투자자금이 입금되고 필요서류가 모두 갖추어지면 영업일 7일 정도면 설립이 완료됩니다. 

 


 

 

ESTABLISHMENT of FOREIGN BRANCH(a Branch office or a Liaison office) / 외국회사의 한국지점(영업소 또는 연락사무소) 설치

 

Establishment of branch office would not require capital investment. So, you can establish a Korea branch if you provide the required documents from Head Office and the branch representative, and the copy of the lease agreement of the office to be used by Korea branch would be required as well. 


외국회사의 한국지점의 설치에는 자본금은 필요가 없으며 한국지점이 사용하게 될 사무실의 임대차계약서와 본사 및 지점장이 준비해야 하는 필요서류만 준비되면 설치가 가능합니다. 

 

 

Establishment procedures of Korea branch are summarized as follow: 


   • Notification to a foreign exchange bank
   • Branch registration to the court
   • Business registration to the tax office 
   • Open a bank account    

 

한국지점설치절차를 요약하면 다음과 같습니다.
   • 외국환은행에 신고 
   • 법원에 지점등기
   • 세무서에 사업자등록 
   • 지점통장 개설 

 

 

Once the required documents are received, it takes about 7 working days to finish the establishment of a branch office.

Feel free to send us an email if you have any questions or want to receive the list or samples of required documents. 

 

필요서류가 모두 갖추어지면 영업일 7일 정도면 설치가 완료됩니다. 

보다 자세한 안내를 받고자 하시는 경우에는 아래의 이메일 또는 채팅으로 연락주시기 바랍니다.​​

DETAILED PROCEDURES / 법인 및 지점 설립절차 

* The below only describes general procedures of incorporation. Procedures may seem too complicated but please don't worry,  we will guide you step-by-step.
 

 

Incorporation procedures of foreign investment company

 

Foreigners must take several legal steps before finally making an actual investment. Each of the steps may vary, depending on the type of investment to be made. The following is the standard preliminary procedures:

  (1) Notification of foreign direct investment
  (2) Carrying-in of capital to make investment
  (3) Incorporation
  (4) Registration of Incorporation
  (5) Business registration
  (6) Account transfer of investment capital
  (7) Registration of foreign investment company

 

     1.  FDI Notification

• Subject of notification: Foreign investors or their proxy (a power of attorney is required when   using a proxy)
• Notification place: Foreign Exchange Banks, KISC
• Required documents: FDI notification form
• Processing period: On-the-spot

 

     2.   Carrying-in of FDI Capital
• Ways to carry in investment capital: Remitted from overseas or hand-carried through customs
• After investment capital is remitted from overseas to a FEB in Korea, the capital shall be converted into Korean Won and be deposited into a temporary account
• Later, the capital will be transferred to a 'share subscription account', and when this transaction is made, the bank will issue a certificate verifying a custody of paid-in capital, which is required in the registration of incorporation.

 

     3.  Registration of Incorporation

 

     4.  Business Registration

 

     5.  Account Transfer of Investment Capital
•After procedures for the registration of incorporation and for the business registration are completed, the remitted capital, which is deposited in a temporary account, will be transferred to the company account.

 

     6.  FDI Company Registration
•Registration period: within 30 days from the date on which the payment required has been completed
•Registration place: Institution where a FDI notification has been filed
•Required documents: - Application form for FDI registration, Certificate of exchange/deposit of foreign currency ( In case of FDI in kind, a certificate of completion of FDI in kind is required), Transcript of incorporation registration ( In case of private business, a certificate of business registration is required)

 

 

외국인투자회사의 설립절차

 

(1) 외국인투자회사 설립 흐름도 
외국인 투자신고 →  외국인투자자금송금 →  회사설립등기  → 사업자등록 →  납입자본금의 법인계좌이전 →  외국인투자기업등록   

 

(2) 외국인투자신고 
신고인:  투자자 또는 대리인
신고장소:  외국환은행  

제출서류로는 신주취득에 의한 외국인 투자신고서와 위임장입니다.

 

(3) 투자자금도입은 내·외국계 모든 은행의 외환업무 담당에서 처리가 가능
송금시 유의할 점은 ①투자자의 명칭과 ②외국인 투자기업의 명칭, ③외국인 투자기업의 설립자본금임을 명시하여야 합니다. 

 

(4) 회사설립의 법원등기   

 

(5) 사업자등록   

 

(6) 납입자본금의 법인계좌 이전 

 

(7) 외국인투자기업등록증명

투자장소:  외국인투자신고를 한 기관 (외환은행)
등록기한:  출자목적물 납입완료일로부터 30일 이내

제출서류로는 외국인투자기업등록증명서와 법인등기부등본, 외국환 매입 증명서입니다.

 

 

 

Branch Establishment


To establish a branch in Korea, a foreign company must register with the following three governmental bodies:
(1) The Foreign Exchange Bank (“FEB”)
(2) The Commercial Registry Office of the District Civil Court 
(3) The Korean Tax Authorities 

 

Please find below an outline of documents that should be submitted for each of the above governmental bodies.

 

 (1) Registration with the FEB 

 

Foreign investments into Korea are governed by a set of well-defined regulations contained in the Foreign Investment Promotion Law (“FIPL”) and backed by rules and regulations issued by the Ministry of Finance and Economy (“MOFE”).   

To establish a branch in Korea, a foreign company is required under FIPL to obtain the approval from the FEB for its proposed investment in Korea.  Application for the FEB’s approval takes the form of a submission of the following documents: 

1.   Branch Application 
2.   Power of Attorney appointing one as an agent of the head office and conferring upon him the authority to prepare, execute, and file requisite documents required for affecting a foreign corporate branch registration and to perform any and all related acts.  We generally appoint one of our staff members with full power of attorney. 
3.   Power of Attorney giving branch representative the power to establish and operate its Korean branch 
4.   Certificate of Corporate Registration if one is available for regulatory bodies in the country of the home office or Certificate of Corporate Information of home office incorporating the branch in Korea.  

 The above documents except for first document should be notarized. 

 

 

(2) Registration with the Court 


Pursuant to the Korean Commercial Code, a branch office of a foreign corporation should be registered with the district court as a legal entity.  All operations would then be carried out under the name of the legal entity.  The documents required to register with the district court include the following: 

1.   A copy of the Articles of Incorporation of the foreign corporation establishing the Korean branch. 
2.   A Certificate of Corporate Information.
3.   A Certificate of Corporate Resolution approving the establishment of a branch in Korea and appointing branch representative. 
4.   A Power of Attorney appointing one as an agent of the head office and conferring upon him the authority to prepare, execute, and file requisite documents required for effecting a foreign corporate branch registration and to perform any and all related acts.  We generally appoint one of our staff members with full power of attorney. 
5.   Acceptance of appointment signed by branch representative. 
6.   Certificate of signature of branch representative if he is a foreign national.  

All of the above documents should be notarised.  Moreover, to register the branch, the nationality, the birth date (a passport copy or resident certificates for Korean citizens would do) and the address in Korea (if any) of the representative of the branch must also be provided.

 

 

 (3) Registration with the Korean Tax Authorities 


After registration with the FEB, the Korean branch should also register with the Korean tax authorities.  These documents may be prepared locally and includes the following: 

1.   Report on establishment of the Korean office on the designated form.
2.   A Certificate of Corporate Resolutions approving the establishment of a branch in Korea and appointing branch representative.
3.   Court registration certificate.
4.   Approval certificate from the FEB regarding the establishment of the Korean branch.
5.   Copy of office lease agreement.
6.   Copy of the Articles of Incorporation of the foreign corporation establishing the Korean branch.
7.   Beginning balance sheet and details of balance sheet items.
8.   Copy of the Korean branch representative’s passport (if Korean branch representative is a local national, a resident registration certificate).  

Upon completion of the registration process with the tax authorities, the Korean branch will receive a tax identification number. After it has obtained this tax identification number, it may perform its activities in Korea.

 

 

외국회사의 한국지점설치절차

 

(1) 지점설치 흐름도 

 

지점설립신청 → 외국환은행 (업종에 따라서는 재경부 및 관계기관의 심의가 필요) → 지점설립신고수리인가  → 법원등기  → 사업자등록    

 

(2) 지점설립신고


원칙: 지정거래외국환은행의 장에게 신고
재경부신고사항:  
•자금의 융자, 해외금융의 알선 및 중개, 카드업무, 할부금융 등 은행업 이외의 금융관련업무
•증권업무 및 보험업무와 관련된 업무
•외국인투자촉진법 등 다른 법령의 규정에 의하여 허용되지 않 는 업무
•공서양속을 해칠 우려가 있다고 인정되는 업무

외국환은행에 신고시 제출서류로는 외국기업국내지점설치신고서, 본사의정관, 국내지사장임명장, 대리인에게 위임시 위임장, 본사의 등기부등본 또는 영업허가서입니다.  

 

(3) 지점설치의 법원등기

 

(4) 사업자등록

 

 

 

SAMDO ACCOUNTING FIRM                BUSINESS ID# : 575-81-00046

ADDRESS : 3F Chungwon Bld., Sapyeong-daero 361, Seocho-gu, Seoul, Korea

TEL : (070) 4640-3753       FAX : (02) 6008-6858       EMAIL : justinseo@samdoacc.com

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