FDI incorporation/Branch establishment procedures

FDI(Foreign Direct Invested) Company Incorporation

Incorporation procedures are summarized as follow:

  • Notification of investment to bank
  • Remittance of investment capital
  • Registration of incorporation to the court
  • Business registration to tax office
  • Company bank account opening and capital deposit
  • Registration of foreign-invested company(when necessary)

If you want to register the incorporated company as an FDI(Foreign-Direct-Invested) company according to Foreign Investment Promotion Act, minimum amount of investment would be KRW 100 million. Such registration is required when the incorporated company wants to apply for the tax benefits 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.

So, if your company to be incorporated in Korea is not a high technology company nor is located in free trade zone, tax benefits are not applicable and the company will be taxed in a same way as local Korean companies are taxed. And, if you don't need the registration of FDI 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 foreign-invested company is the application of investment visa. So, if you need to apply for an investment visa after incorporation, FDI company registration is necessary.

Once the investment capital and required documents are received, it usually takes 10 working days to complete the incorporation of a company.

Branch Establishment

Establishment of branch office would not require capital investment. So, you can establish a Korea branch if you provide the required documents without remitting capital investment.

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

Once the required documents are received, it usually takes 10 working days to complete the establishment of a branch office.

Please contact us via email if you have questions or want to receive the list or templates of required documents