K&P Law Firm - International Law Firm in Incheon, South Korea

The establishment of a local corporation and private business registration are recognized as foreign investment under the Foreign Investment Promotion Act. However, the establishment of a domestic branch is not recognized as a foreign investment, and regulated by the Foreign Exchange Transactions Act. 1.Types a Foreign Company's Domestic Branch 2.Procedures to Establish a Foreign Company's Domestic Branch 1.Types a Foreign Company's Domestic Branch There are two types of domestic branches: a branch and a liaison office. A branch undertakes sales activities in Korea to generate profits. Meanwhile, a liaison office does not conduct sales activities to create profits, but instead carries out non-sales functions such as business contacts, market research, R&D, etc. Liaison offices can carry out quality control, market surveys, advertisements, and other incidental and supportive roles. However, they are limited in their scope of activities, since they are not

The procedures for the local corporation establishment by a foreign investor are mostly similar to those for domestic corporation establishment except for the pre-report of foreign investment and the registration of a foreign-invested company. 1.The Procedure for Local Corporation Establishment 2.The Procedure for Stock Company Establishment 1.The Procedure for Local Corporation Establishment The procedures of local corporation establishment consist of foreign investment report, registration of the establishment of a corporation, business registration and registration of a foreign-invested company, which are the same with the foreign investment procedures. The following includes the details of company establishment and business registration procedures which are significant in establishing a local corporation. 2.The Procedure for Stock Company Establishment Partnership company, joint stock company, limited liability company, stock company and incorporated company

There are three types of a foreigner's advancement into Korea for the purpose of operating business: the establishment of a local corporation or a private business by a foreigner or a foreign corporation; or the establishment of a local branch or a liaison office in Korea by a foreign corporation. 1. How Foreigners Advance into Korea 2. Comparison of a Foreign-Invested Company and a Domestic Branch 1. How Foreigners Advance into Korea Type Act Note 1 Local Corporation Foreign Investment Promotion Act Recognized as a foreign investment 2 Branch Foreign Exchange Transactions Act Categorized as a domestic branch of the foreign corporation 3 Liaison office 2.Comparison of a Foreign-Invested Company and a Domestic Branch  A Foreign-Invested Company under the Foreign Investment Promotion Act Establishment of a local corporation in Korea by a foreign national or a foreign corporation is regulated by the Foreign Investment Promotion Ac

When a foreign investor or a foreign-invested company has completed payment of object of investment or acquired existing stocks, etc., he/she/it shall take procedures to register a foreign-invested company to the president of KOTRA or the head of a foreign exchange bank as prescribed by Acts and statutes of the Republic of Korea. The registration may be cancelled for certain reasons. 1. Alteration Registration of the Foreign-Invested Company 2. Report of Transfer of Stocks and Capital Reduction 3. Report of Disposal of Capital Goods 4. A Foreign-Invested Company's Additional Business Operation or Acquisition of Another Domestic Company's Stocks 5. Cancellation of Foreign-Invested Company Registration 1. Alteration Registration of the Foreign-Invested Company A foreign investor (an agent) or a foreign-invested company shall file an alteration registration of the foreign-invested company at a delegated institution within 30 days from the occurrence of any of the