Incorporation procedures of foreign investment company

Foreigners must take several legal steps before finally making an actual investment. Each of the steps may vary, depending on the type of investment to be made. The following is the standard preliminary procedures:

(1) Notification of foreign direct investment

(2) Carrying-in of capital to make investment

(3) Incorporation

(4) Registration of Incorporation

(5) Business registration

(6) Account transfer of investment capital

(7) Registration of foreign investment company

     1.  FDI Notification

• Subject of notification: Foreign investors or their proxy (a power of attorney is required when   using a proxy)

• Notification place: Foreign Exchange Banks, KISC

• Required documents: FDI notification form

• Processing period: On-the-spot

     2.   Carrying-in of FDI Capital

• Ways to carry in investment capital: Remitted from overseas or hand-carried through customs

• After investment capital is remitted from overseas to a FEB in Korea, the capital shall be converted into Korean Won and be deposited into a temporary account

• Later, the capital will be transferred to a 'share subscription account', and when this transaction is made, the bank will issue a certificate verifying a custody of paid-in capital, which is required in the registration of incorporation.

     3.  Registration of Incorporation

     4.  Business Registration

     5.  Account Transfer of Investment Capital

• After procedures for the registration of incorporation and for the business registration are completed, the remitted capital, which is deposited in a temporary account, will be transferred to the company account.

     6. FDI Company Registration

• Registration period: within 30 days from the date on which the payment required has been completed
• Registration place: Institution where a FDI notification has been filed
• Required documents: - Application form for FDI registration, Certificate of exchange/deposit of foreign currency ( In case of FDI in kind, a certificate of completion of FDI in kind is required), Transcript of incorporation registration ( In case of private business, a certificate of business registration is required)