Establishment of a Korean Subsidiary
Following are the procedures necessary for the registration of a Korean subsidiary. Please note that the following three procedures are taken in sequence. Total time length to complete is these registrations would take approximately three weeks once we receive the documents from you.
A. Approval from the Ministry of Finance and Economy
First, a foreign investor should obtain an approval of foreign investment from the Ministry of Finance and Economy or its delegated commercial bank in Korea, as appropriate. This approval requires the following information and documents under the Foreign Investment Promotion Law.
1. An application for the approval of foreign investment. See, Exhibit A-1. (by foreign investor.)
2. A business plan of the foreign invested company. See, Exhibit A-2. (by foreign investor.)
3. A certificate of corporate nationality. See, Exhibit A-3. (by foreign investor.)
4. A certificate of corporate resolution. See, Exhibit A-4. (by foreign investor)
5. A power of attorney. See, Exhibit A-5. (by foreign investor)
Documents mentioned above do not have to be notarized by a notary public.
Once these documents and information are available to us, it would take about 4 days to obtain the approval from the authority.
B. Incorporation and Registration with the Civil Court
The second step is to incorporate and register the foreign invested company with the commercial recording office in the Civil Court. For this purpose, we need the following documents.
1. A power of attorney. See, Exhibit B-1. (by foreign investor)
2. A power of attorney. See, Exhibit B-2. (by each foreign individual who will be nominated as director(s) of the new company. A limited company must have three or more directors.)
3. A letter of acceptance. See, Exhibit B-3. (by each foreign directors and in-house auditor of the new company)
4. A report of seal. See, Exhibit B-4. (by the representative director (i.e., president) of the new company)
5. Articles of Incorporation of the Korean subsidiary. See Exhibit B-5. [If you give us your comment on the attached sample, we will finalize and translate it into Korean language to file with the commercial recording office.]
6. Copies of passport of foreign directors and in-house auditor, just first page of passport showing personal information.
Documents, B-1 through B-4, must be notarized by a notary public in the home country.
Once the documents and information are available to us, it would take approximately four days to complete the incorporation procedures.
C. Registration with the Tax Office
The third step is to register the new company with the tax office. For this purpose, we need a copy of office lease agreement concluded between the new company and landlord along with a copy of passport of the proposed representative director; others will be prepared locally by us. It will take approximately ten days to obtain a "certificate of business registration" from the tax office.
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