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Establishing a Foreign Investment Corporation
Today, we’re going to give you an overview of one of the ways foreigners can set up a business in Korea.
Investor qualifications
- Individuals with foreign citizenship
- Entities incorporated under the laws of a foreign country
- An organization that acts on behalf of a foreign government in foreign economic relations
Requirements for establishing a foreign investment corporation
- You invested $100 million or more from a foreign country and acquired 10% or more of the voting stock.
- Possible entity types are corporation, limited company, limited liability company, limited partnership, and general partnership.
- Individual investors must serve as their own representative, while corporate investors can designate a representative.
- It is possible to establish a company with a foreigner and a Korean co-president.
- If you are investing in an existing Korean corporation, you can change to a foreign-invested corporation.
Advantages of establishing a foreign investment corporation
- Classified as a domestic corporation, you can enjoy the same benefits as domestic companies, such as small business registration and venture company registration, which are governed by domestic laws.
- You can also freely specify your company name and business sector (except for foreign restricted industries).
- In the event of a business problem, you will be liable for the amount of your investment, and the liability will not be shifted to us.
- D8 visa can be issued, and employees can be replaced and dispatched when investing in a corporation.
Establishment process and how long it takes
Establishing a foreign investment corporation requires a coordinated system of cooperation between the foreign exchange bank, administrator, lawyer, and tax lawyer. While lawyers and tax lawyers may also be involved in the establishment of a foreign investment company, an administrator who specializes in foreign affairs will often organize the entire process.
Even if the investor is not in Korea, the company can be established through an agent with a notarized power of attorney. The basic order of establishment is as follows, but they often happen simultaneously.
| Order of Incorporation | Representative | Timeframe |
| Preparing an Apostille for a Foreign Corporation or Individual | Administrative history | |
| ⇒ Foreign Investment Declaration and Temporary Account Opening | 1 day | |
| ⇒ Send or carry investment funds | 2-3 days | |
| ⇒ Registration of Incorporation | Lawyer | 3-5 days |
| ⇒ Obtaining a Business License (Required Businesses) | Administrative history | 變更 |
| ⇒ Incorporation and Business Registration | 2-3 days | |
| ⇒ Issuance of Foreign Investment Company Registration Certificate | 1 day | |
| ⇒ Open a corporate bank account | 1 day | |
| ⇒ Apply for D8 visa (if needed) | 1 month minimum | |
| Setting up a tax preparer | Tax preparer |
Documents and precautions for incorporation
Documents issued abroad must be apostilled and notarized with a translation into Korean.
For individual investors, the documents you need to prepare may vary depending on your situation, such as whether you are establishing while in the country or while abroad. The basic documents are listed below, but your bank and tax office may require additional supplementary documents.
Depending on the registry office regulations, there are many things to pay attention to, such as the date of the apostille, the date of the acceptance of office, and the date of the balance certificate. If you don’t know the rules of the court registry, you may have to redo the apostille.
Also, if you are planning to apply for a D8 visa in the future, we recommend that you work with an experienced visa administrator, as the legal entity must be established in accordance with the visa regulations.
| Individual Investors | Corporate Investors | Common Documents |
| Copy of passport Copy of ID Notarized letter of address Letter of acceptance of office | Certificate of Incorporation Articles of Incorporation Board of Directors’ Resolution Shareholders’ List Acceptance of Appointment Letter of Appointment Dispatch Order Reason for Dispatch Passport Copy of Overseas Representative Address of Overseas Representative Notarized | Office lease Power of Attorney |
Foreign Investment Corporation accounting and taxation
- Employee recruitment procedures and accounting books must be kept in accordance with Korean accounting standards.
- External audits are mandatory for certain requirements.
- You owe corporate taxes and are taxed on all profits in aggregate
- 200 million or less 9
- Over 200 million won to under 300 million won 19
- Over 300 billion won 21
- Investment Dividend Tax Rate
- The investment dividend tax rate for domestic corporations is 15.4%.
- Foreigners are subject to tax treaties with other countries
- Repatriation of profits abroad: can be done in the form of dividends
Can apply for a D8 visa
- If you are an individual investor, apply for a D8 visa with yourself as the representative
- Sending officers and employees on D8 visas when the foreign entity is an investor
Inquire about establishing a foreign investment corporation in Korea
- 법무부등록 출입국민원 대행기관
- 외국인 이민 / 비자 / 정착 서비스 전문기업으로서의 전문성
- 영어, 중국어, 일본어, 스페인어, 몽골어 등 외국어 상담 가능
- 아포스티유에 필요한 서류 번역 제공으로 본사, 담당자 업무부담 해소
- 은행 글로벌센터, 법무사, 세무사 협력체계 구축으로 신속하고 전문적으로 일괄 처리
- 비자신청, 사무실 찾기, 법인등기, 세무대리인 설정까지 한번에 OK
Provide samples for accurate documentation
- 외국인 투자신고
- 외국환 거래은행 지정신청
- 정관 작성 서비스
- 취임승낙서 작성 서비스
- 법인설립 등기
- 사업자등록증 발급
- 외투기업등록증 발급
- 은행계좌개설
- 비자발급
- 세무대행
