‘Foreign Investment Promotion Act’ and ‘Commercial Act’ apply to investments made through local corporations established by a foreigner or a foreign company. And If the investment amount is more than 100,000,000krw, the local corporation might receive benefit by ‘Foreign Investment Promotion Act’
The corporation need to be registered with ‘Korean Registration Office’ under Korean court and Korean tax office.
The foreign investor and foreign-invested corporation are separate entities.
A foreign company that intends to carry out business activities in Korea should establish it’s branch. The foreign companies need to register it with ‘Korean Registration Office’ under Korean court and Korean tax office. And also the investor have to report the branch to a specified foreign exchange bank.
The head office(=the foreign company) and branch are a single entity(=not separated).
C. Liaison Office
A liaison office only carries out non-sales functions such as business contacts and market research, etc. on behalf of the main office. This does not require any complicated registration formalities, besides registering it with the national bank and the tax authorities. and only business code number from Korean tax office will be issued to the liaison office.
Our Corporation Team
Start Law Firm is a law firm providing a range of cost effective legal services to foreign companies who is willing to establish it’s business in Korea. Our Corporate Practice team has various experience in the field of establishment and operation of foreign (invested) entities from many countries.
We are helping you do business right, organize your business to comply with the law, reviewing and drafting contracts, coaching you on legal pitfalls as you grow your business, and more.
Join us, and you will always have a strategic partner who will walk with you through the legal aspects of your business in Korea.