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Incorporation in Korea

FDI InformationIncorporation in KoreaIncorporation Procedure

Incorporation Procedure (Eng) Incorporation Procedure (Ch)

Flow of Foreign Investment Procedure

1. When a foreign investor considers entering the Korean market, the first thing to consider is:

- Whether to invest as a direct investment corporation or in the form of a branch or office.
- (1) If entering in the form of a branch or office:
  
  -> Follow the process of "Key Considerations when Establishing a Branch or Office."
- (2) If investing as a direct investment corporation:
  
  -> Follow the processes outlined below.
2. Preliminary Investment Consultation:

Before making a decision to invest, foreign investors should engage in thorough preliminary consultations regarding their intended investment. This allows for the most suitable investment form to be determined and saves time and energy in preparing for the establishment of the foreign-invested enterprise.
- (1) Confirm the business content to be invested in and determine the business type and category according to the Korean Standard Industrial Classification.
  
  : Verify whether there are any investment-restricted industries under the Foreign Investment Promotion Act or other specific laws.
- (2) Decide on the investment form and ownership structure:
  
  - Determine the form of the corporation such as a stock company or a limited company;
  - Decide on the investment amount and ownership structure;
  (Check whether the investment meets the requirements of the Foreign Investment Promotion Act)
  (For instance, a foreign individual's stake of 10% or more, and an investment of at least KRW 100 million are required.)
- (3) Select the business site:
  
  - Evaluate business site options based on the business content;
  - Decide whether to lease or acquire the business site.
- (4) Advisory on Board of Directors Composition:
  
  If the Board of Directors includes foreign members, additional documentation preparation is needed.
3. Determination of Investment Details -> Proceeding with Establishment of Foreign-Invested Enterprise

Once the aforementioned investment considerations are determined through preliminary investment consultation, the establishment of the foreign-invested enterprise is initiated. The most critical steps here are to undergo "Foreign Investment Declaration" and carry out practical tasks of preparing documentation for the establishment of the foreign-invested corporation.
- (1) Foreign Investment Declaration:
  
  Before establishing a foreign-invested enterprise, a foreign investor must first make a foreign investment declaration. Following the declaration, the investment amount is remitted to make preparations for the establishment of the investment company.
- (2) Preparation of Documentation for Establishing Foreign-Invested Corporation:
  
  Establishing a foreign-invested corporation involves more time-consuming documentation preparation due to the potential inclusion of foreign shareholders and executives. Additional documentation might be required, so the preparation time can range from 2 to 3 weeks, or even more than a month, compared to domestic corporations.
4. Foreign Investment Declaration:
- (1) Under the Foreign Investment Promotion Act, a foreign investor can register as a foreign-invested enterprise if an individual foreign investor holds a stake of 10% or more and the investment amount is KRW 100 million or more. Upon registration as a foreign-invested enterprise, they can obtain a D8 visa (with which a foreigner can stay in Korea for business) for every KRW 100 million of investment.
- (2) Foreign Investment Declaration should be made before remitting the capital for the establishment of the foreign-invested corporation. If the foreign investor cannot directly carry out the investment, a power of attorney can be used for a domestic agent to proceed on their behalf.
- (3) Foreign Investment Declaration Form is submitted in duplicate in either Korean or English to institutions such as the Korea Trade-Investment Promotion Agency (Kotra) or the Foreign Exchange Bank. (Submit in Korean or English, two copies each)
  
  - Investment Industry: Specify the business content to be invested in (provide up to the sub-classification in the Korean Standard Industrial Classification).
  - Investment Amount: Minimum of KRW 100 million per case
  - Investment Ratio: At least 10% per case
     (For cases with two or more investors, each investor must meet the criteria of the above two points)
  - Investor's Trade Name, Name, and Nationality
  - Invested Company's Trade Name, Name, and Address
     (Appendix 1) Foreign Investment Declaration Form for Share Acquisition (Template)
     (Appendix 2) Power of Attorney for Investment (Template)
     (Prepare if an agent is involved)
- (*) Excluded from Foreign Investment Declaration:
  
  If a foreign investor does not meet the criteria for foreign investment declaration as outlined in the Foreign Investment Promotion Act (holding a stake of 10% or more and investing KRW 100 million or more), you will need to proceed with a foreign exchange report ("Securities Acquisition Report") based on the Foreign Exchange Transactions Act.
  (In this case, it is convenient to open an account for at least one shareholder at the same time.)
- (*) Issuance of Foreign Investment Declaration Certificate upon Declaration
  
  1) Submit a declaration to the Korea Trade-Investment Promotion Agency (Kotra) or Foreign Exchange Bank
  
  (Confirm whether the industry is subject to declaration), (Confirm required documents for declaration)
  
  2) For Declaration after self-entry to Korea:
  
  ① Individual: Passport
  ② Corporation: Passport of Representative, Document confirming corporation (Certificate of Registration, Copy of Business Registration Certificate, other official documents)
  
  3) For an agent on behalf:
  
  ① Notarized Investment Declaration Power of Attorney (POA)
  (Depending on the bank, Korean consulate verification or apostille may be required)
  ② Individual: Passport
  ③ Corporation: Passport of Corporate Representative, Document confirming corporation (Certificate of Registration, Business Registration Certificate, other official documents)
5. Remittance of Investment Capital from Abroad

(Remitting Capital from Abroad to the branch of the foreign exchange bank)
- (1) Mandatory Information for Remittance:
  
  ① Beneficiary Bank: (Example) Woori Bank Seoul Global Investment Center KOOKMIN BANK
  ② Sender's Name: name of the foreign investor
  ③ Beneficiary's Name: Newly Established or Joint Company Name
  ④ Purpose of Funds:
     e.g.) “( ) Company Establishment or Investment Funds“
     New establishment of company (ⓝⓐⓜⓔ)
     This fund is for the establishment of ( ). co
- (2) Timing of Capital Remittance
  
  Usually done shortly after submitting the investment declaration, but can also be done before declaration. However, if remittance arrives before declaration, currency exchange should not be made before declaration.
  (Appendix 3) Bank-Specific Remittance Instructions (Template)
- (3) Issuance of Foreign Currency Certificate
  
  ① Foreign Currency Purchase Certificate or Foreign Currency Deposit Certificate
  ② Proof of Deposit and Storage of Initial Contribution or Balance Certificate (for Corporate Registration)
6. Document Preparation Guide for Establishment of Foreign-Invested Corporation

The process of establishing a foreign-invested corporation is similar to that of a domestic corporation. However, due to the presence of foreign shareholders and executives in a foreign-invested enterprise, more time is needed for preparing documentation, and additional documents may be required. Therefore, the preparation time can range from 2 to 3 weeks, or even more than a month, compared to domestic corporations.

Therefore, it is important to meticulously check and prepare documents from the preparation stage to reduce errors and save time and effort. Please note that you need to allocate sufficient time for document preparation in that sense.

(*) Preparation of documents required for establishment and registration:

-> Refer to (Appendix) 'List of Preparation Documents for Foreign Investment Enterprise Establishment'
(Appendix 4) Requirements and List of Preparation Documents for Foreign Investment Enterprise Establishment (Template)
7. Corporate Registration Process

(The registration process follows the general procedure for corporation establishment, but note that additional requirements exist in document preparation for foreign-invested corporations)

(-> Partnering Legal affairs office handles the procedure)
8. Completion of Corporate Registration & Application for Business Registration
- (1) Once corporate registration is completed, application for business registration will immediately be made.
  
  Attach registration certificate, shareholder list, copy of lease agreement, etc., and apply for establishment and business registration at the tax office in charge of your business place.
  (For Foreign-Invested Corporations) Establishment declaration and application for business registration
- (2) Opening Corporate Bank Account, Etc.
  
  * Once the business registration certificate is issued, you can open a crporate bank account.
  * Transfer capital from a deposited account in a bank account under the corporation's name.
  * Issue a corporate card,
  * Prepare for the commencement of business activity by the corporation
9. Application and Issuance of Certificate of Registration for Foreign Investment Enterprise
- (1) Application for Registration of Foreign Investment Enterprise
  (Attached documents)
  
  * Corporate Registration Certificate, Business Registration Certificate
  * "Foreign Currency Purchase Certificate" for foreign currency funds received as capital
- (2) Commencement of Business Activity as a Foreign Investment Enterprise
(*) Issuance of Investment Visa (D-8)
- (1) In the case of foreign investment, a D-8 investment visa can be issued for every KRW 100 million invested
- (2) Corporate Investment Visa (D-8 Visa)
  
  When applying for an investment visa, submit documents related to company establishment such as corporate registration documents and documents proving the use of investment funds.

☞ Pre-considerations to review and confirm:

1. Confirmation of Investment Amount (Whether over 100 million KRW, 10% or over 1 billion KRW)
2. Verification of Foreign Investor's Individual or Corporate Status
3. Check on Arrival in Korea for Investor (Corporate Representative)
4. Confirmation of Foreign Executives and Their Entry to Korea
5. Verification of Feasibility of Schedule for Foreign Executives' Entry to Korea
6. Verification of Appointment of Korean Executives and Appointment of Korean Corporate Representative

Estimated Timelines for reference

Category	Milestone	Duration (day)	Note
1. Preliminary consultation	Before Initial Consideration of Foreign-Invested Enterprise Establishment	1	Initial Consultation for Establishment and Consultation on Document Preparation
2. Foreign Investment Enterprise Declaration	After Confirmation of Foreign Currency Remittance for Initial Capital	1	Including Time for Document Preparation
3. Remittance of Investment Funds	Before and After Foreign-Invested Enterprise Declaration	1	In Foreign Currency
4. Document Preparation Status Check	After Remittance of Investment Funds	7 – 14	Confirmation of Document Preparation Status for Establishment
5. Corporate Establishment Registration	After Remittance of Investment Funds (after Document Preparation Confirmation)	7	Including Preparation Period of 5-7 days
6. Declaration of Establishment and Business Registration Application	Immediately after Corporate Establishment Registration	3	In typical cases, immediately If necessary
7. Registration of Foreign Investment Enterprise	After Corporate Establishment Registration	1
()() Investment Visa (D8) and Foreigner Registration (Executives & Employees)	After Registration of Foreign-Invested Enterprise	*	If necessary
Total		28 days (+)(-) @

外国投资者报告程序

(取得新股等时)

1. (事前)投资咨询

只有在对外国投资者想要投资的内容进行充分的事前咨询后,才能决定投资形，以准备文件和报告外国投资上，可以节省时间和精力。

(1) 投资的业务内容确认,投资的业务类型确认（韩国标准产业分类表）

(2) 外国投资促进法上或者个别法令上是否投资限制行业确认

(3) 投资形式决定

* 股份公司、有限公司等法人形式的决定
* 投资额、股权结构的决定（是否符合外国人投资促进法的要求? 确认）

(4) 事业场选定

* 根据业务内容审查选择工作场所
* 确定是否租用或者购置业务场所

2. 投资报告的写(国文本或者英文本2部写)

(1) 投资行业: 投资项目的内容(韩国标准产业分类表上记录到细细分类)

(2) 投资额: 每件1亿韩元以上(2010年底从5千万韩元变更1亿韩元)

(3) 投资比率: 每件10%以上

2人以上的话, 各各应该有以上的第(2)(3)款的要求）

(4) 投资者商号、名称和国籍

(5) 投资企业的商号、名称和地址

(附添1) 新股等由于购置的外国投资申报书(样式)
(附添2) 投资委任状(Power of Attorney)(样式)
(代理人的话委任状写)
(*) 如果不是外国投资申报对象的话
根据外汇交易法外汇交易报告(证券购置申报)
跟股东中一人账户开户的时候同时做是方便。

3. 投资申报和投资申报证书交付(立即交付)

(1) 韩国贸易投资促进公司(Kotra)或者向外汇银行报告

(报告对象的行业确认), (申报具备文件确认)

(2) 本人入境申报的场合

① 个人:护照
② 法人 : 代表护照
公司证明书 (公司注册簿副本、营业执照副本，其他公的证明书）

(3) 代理人的场合

① 公证得到的投资申报委任状
（根据银行韩国领事确认或者 apostille/公文书国外认证制度要求）
② 个人:护照
③ 法人(公司）: 法人(公司)代表护照
公司证明书 (公司登记证、企业登记证，其他公的书面 )

(4) 从投资国提前汇款的场合

汇兑前,一定要(必须)挂号投资报告

4. 从外国投资金汇款

(从外国收到资本金汇款到外国汇银行的国内分行)

(1) 汇款时必需记载的事项

① 接收银行名称 : (举例) Woori Bank Seoul Global Investment Center
KOOKMIN BANK
② 汇款人名:外国投资者
③ 收件人名称 : 新设或合资企业名称
④ 资金用途 : “( ) “公司设立或者投资资金用
New establishment of company (ⓝⓐⓜⓔ)
this fund is for the establishment of ( ). co

(2) 投资资金汇款的时期

一般来说,在投资报告挂号后脚完成，但报告之前也可以。
但是, 在报告前收到汇款的场合，申报前不能兑换
(附添3) 各银行汇款说明(Remittance Instruction)(样式)

(3) 签发外汇证书发给

① 外汇购买证明书或者外汇存款证明书
② 存款证明书或者余额证明书公司登记用）
<= 在法务士办公室申请代行

5. 公司(法人)设立登记程序执行前准备文件检查

(*)设立登记上需要的文件准备是，通过附添外商投资公司法人设立准备文件一览检查。
(附添 4) 外国人投资法人设立准备事项和准备文件一览(样式)
外国人投资法人的场合，基本上与一般的国内法人设立的程序相同。
但是,如果股东或者委员是外国人的场合, 需要准备的文件的形式往往会更加，
而且文件准备上需要很多时间，所以提前跟充分的时间，需要准备文件，
还有当公司设立的时候，如果外国人股东或者委员住在国内(韩国)进行设立业务的话，文件准备的形态也变化了。

6. 法人设立登记程序

(登记程序按照一般法人的设立程序. 但是要注意外国人投资法人的场合在准备文件上有追加的准备事项) (<-在法务士办公室业务代行)

(1) 基本事项

1) 包括董事长(代表理事），理事3人以上，监事1人以上（资本金10亿以上的场合）
2) 股东订购人包括4名以上 (发起人3名, 订购人1名以上 )，
3) (资本金10亿以下的场合, 理事和监事一共2名可以设立)
4) (如果委员中有一名不是股东的话，在法人设立的时候公证事务省略等简化了)

(2) 法人(公司)的发起人(股东)，委员是外国人的场合具备文件

① 发起人(股东)是外国人（外国法人）的场合
  1) 从本国公证收到的投资委任状3本（包括定款和议事录公证委任）
  如果外国人不在在国内或者不能直接出席公证办公室的话，
  要把委任状从本国公证以后收到（吧那个权限委任到○○○的内容）
  2) 护照副本(如果股东是个人)
  3) 法人(公司)证明书(如果股东是法人)
  (外国法人的存在, 代表理事/董事长和总部所在地证明的文件)
  例如,公司登记证或者营业执照，其他公的证书
  4) 如果日本和台湾等印鉴证明书发行可以国家的话，在公证用委任状上面吧法人或者个人印鉴盖章以后，附添印鉴证明书
  5) 必须所有的文件被翻译
② 如果理事和监事是外国人的场合，以下的方法中选择一
  1) 未入境的场合
  - 签名在就任承诺书和议事录公证委任状(代表理事/董事长是印鉴申报书包括)，吧这些文件公证(在本国公证办公室或者在本国办公厅)，然后Apostille（公文国外认证制度）。
  - 跟就任承诺书护照副本附添公证
  - 护照副本
  2) 入境的场合
  - 签名在就任承诺书和议事录公证委任状(代表理事/董事长是印鉴申报书包括)，吧这些文件公证(在韩国公证办公室或者在韩国驻在大使馆，领事馆公证)
  - 跟就任承诺书护照副本附添公证
  - 护照副本
  3) 如果日本和台湾等印鉴证明书和地址证明书发行可以国家的话，在就任承诺书上面印鉴盖章以后，印鉴证明书和身份证（护照副本，居民登记副，驾驶执照）附添
  4) 必须所有的文件被翻译
③ 外国人代表理事/董事长的场合(添加准备)
  1) 就任承诺书，印鉴申报书（样式），议事录公证委任状签字公证Apostille（公文国外认证制度）
  2) 地址证明书签字公证Apostille（公文国外认证制度）（代表理事/董事长必须添加地址证明书）
  - 有地址证明书的场合，本国地址证明书(日本和台湾等)
  - 没有地址证明书的场合，在本国地址公证Apostille
  (在韩国地址公证是不可以的)
  3）护照副本

7. 法人登记结束 & 营业登记申请

(1) 法人登记结束以后，当即营业登记申请

登记簿副本，股东名单，租赁合同副本等附添，然后外国人投资法人设立申报和营业登记申请在营业地管辖税务局

(2) 法人(公司)账户开户等

* 营业执照发给以后，账户开户可以，所以账户开户以后
* 吧转入银行存入的资本金到法人账户汇款·
* 法人(公司）账户和法人(公司)卡片新开
* 准备开始作为一家法人(公司)营业活动

8. 外国人投资法人登记证书申请和交付

(1) 外国人投资企业登记申请书

(附添文件)
* 法人(公司）登记簿副本, 营业执照
* “外汇购买证明书“关于资本金流入的外汇资金

(2) 营业活动开始作为一家外国人投资企业

(*)投资签证发给(D-8)
(1) 外国人投资的场合，投资金额1亿(韩元)当1件的D-8投资签证发给可以的。
(2) 企业投资签证(D-8 签证)
在投资签证申请的时候，要提交登记簿等法人(公司) 设立关联文件和
投资金使用用途证明可以的文件

☞ 事先确认需要的重要事项

1. 投资资金是否超过1亿韩元 (是否超过10%)或者10亿韩元

2. 确认投资者是个人还是法人(公司）

3. 是否投资者（法人代表）国内入境

4. 委员是否外国人

5. 是否外国人委员国内入境

6. 是否韩国委员任命和是否外投日程进行可以

(*) 按照日程需要的时间 (示例)

区分	时机	需要的时间	备考
1. 事前咨询	外国人投资企业设立研究阶段设立资金汇款前	1天	咨询关于建立基础和文件准备
2. 外国人投资企业申报	外资汇款确定后	1天	包括文件开具时间
3. 投资金汇款	外国人投资企业申报前后	1天	外汇
4. 确认文件准备状态	投资金汇款后	7天	确认设立文件准备状态
5. 法人(公司)设立登记	投资金汇款后 (文件准备确认后 )	7天	包括准备期间5-7天
6. 设立申报和营业执照申请	法人(公司)设立登记后立刻	3天	通常情况下立刻
7. 外国人投资企业登记	法人（公司）设立登记后	1天
(*)投资签证(D8)和外国人登记（委员和职员）	外国人投资企业登记后	*天	需要的时候

需要时间一共		21天 (+)(-) @

Incorporation in Korea

Incorporation Procedure (Eng) Incorporation Procedure (Ch)

Flow of Foreign Investment Procedure

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