TITLE : Business in Korea 2024 PART 3 - Procedure by Type of Investment 1-1
페이지 정보
본문
■ Business in Korea 2024
PART 3
Procedure by Type of Investment 1-1
[In case of non-cash investments]
01 | In corporation |
【 Incorporation Procedure 】
※ Related laws: Articles 5 and 21 of the Foreign Investment Promotion Act , Articles 6 and 27 of the Enforcement Decree of the Act, Articles 2 and 17 of the Enforcement Rules of the Act
- Foreign Direct Investment Notification
A foreign investor is required to pre-notify the FDI to KOTRA (Includes KOTRA’s ForeignInvestor Support Center and overseas investment hub offices) or a foreign exchange bank.
▶ DOCUMENTS
Foreign Direct Investment Notification
- 2 copies of the notification form (Enforcement Rules of the Foreign Investment PromotionAct, Attached Form 1 : notification of foreign investment by acquisition of stocks or contributionand application for its permission)
- Foreign investor’s certificate of nationality (Foreigners: passport; Foreign corporationor organization: business license, certificate of incorporation, or proof that the said corporationor organization is based in the said country)
[In case of non-cash investments]
- Documents certifying object of investment (e.g. documents certifying the monetaryvalue of industrial property rights
* Where an agent files an application: Power of Attorney and the agent's identification (ID card)
※ Contact: Foreign Investor Support Center (1600-7119)
▶ IN DETAIL
Evaluation of Technology
In order to invest with technology, the foreign investor should submit documents certifying themonetary value of industrial property rights, etc. Technology evaluation agencies are as follows:Korea Institute for Advancement of Technology, Korea Technology Finance Corporation, KoreaEvaluation Institute of Industrial Technology, Korea Environment Corporation, Korean Agencyfor Technology and Standards, Korea Institute of Science and Technology, Korea Institute ofScience and Technology Information, and National IT Industry Promotion Agency.
※ Article 30 (4) of the Foreign Investment Promotion Act, Article 39 (2) of the Enforcement Decree of the Act, andArticle 4 of the Enforcement Decree of the Act on Special Measures for the Promotion of Venture Business
- Remittance of Investment Funds
A foreign investor may remit investment funds by wire transfer to a temporary account at adomestic bank from overseas or hand-carry the foreign currency through customs directly. In thelatter case, the investor should declare the funds at the customs office and receive a 'certificate ofdeclaration of foreign currency'. In principle, the remitted investment funds should undergo theprocedure for deposit of funds for payment for shares and then a certificate of deposit of paymentfor shares is submitted to the court. However, in case of companies valued less than KRW 1 billion,it is possible to submit a certificate of balance after opening an account in the name of an investor.In this case, the funds can be freely withdrawn for business purposes from the following day.
▶ INFORMATION
- Opening a Temporary Account
A foreign investor may open a temporary account after submitting documentary evidence of nationality(a certificate of existence of the foreign investor’s nation or a passport) to the bank. However, therequired documents could differ depending on the financial institution. In addition, the remittanceshould be done in foreign currency and the purpose of the remittance should be stated ’investment.
- Opening a Temporary Account
- Registration of Incorporation
The registry division in the court accepts the application for registration of incorporation and it takestwo to three days for the registration. The required documents can be checked on the list of applicationforms and required documents from the Registry of Supreme Court Internet Register Office.
※ See PART 4. Incorporation ▶ Incorporation procedure ▶ 03. Registration of Incorporation
- Authorization and Permission
Where deemed necessary for business, a foreign investor must acquire authorization or permission from thecompetent authorities: District Office, Health Center, Ministry of Food and Drug Safety, etc. The processingperiod may vary depending on the sort of authorization and permission for the type of business.
※ See PART 4. Incorporation ▶ Incorporation procedure ▶ 04. Authorization and Permission
- Notification of Incorporation and Business Registration
Every tax office accepts notification of incorporation and business registrationregardless of the jurisdiction. They should be done within 20 days of the businesscommencement date.
※ Application for business registration can be submitted to the KOTRA Foreign Investor Support Center (approval: tax office)
※ See PART 4. Incorporation ▶ Incorporation procedure ▶ 05. Notification of Incorporation andBusiness Registration
- Opening of Corporate Bank Account
A foreign investor shall open a corporate bank account at a foreign exchange bankimmediately. However, choosing a bank requires careful consideration since openingadditional accounts at another bank is restricted for 20 business days.
※ See PART 4. Incorporation ▶ Incorporation procedure ▶ 06. Opening a Corporate Bank Account
- Registration of Foreign-invested Company
After the registration of incorporation, foreign-invested company registration shallbe undertaken at KOTRA or at a foreign exchange bank where the notification wasfirst made as the last step of FDI incorporation. The registration should be completedwithin 60 days following the payment of the object of investment.
▶ DOCUMENTS
Registration of Foreign-invested Company
- Application form
(Attached Form 17 of the Enforcement Rules of the Foreign Investment Promotion Act: Applicationform for foreign-invested company registration
- Incorporation registration certificate / Foreign currency purchase certificate /Shareholder’s list /Copy of business license
* Where an agent files an application: Power of attorney and the agent’s identification
- Application form