A foreigner setting up a foreign-invested company in Korea goes through a foreign investment report, payment of the investment funds, incorporation registration, business registration and foreign-invested enterprise (FIE) registration. Government fees and statutory costs arise separately at each step, and the amounts must be confirmed from the competent authority's current notices. There is no fixed duration; the time depends on the competent authority at each step.
For the step-by-step guide see Foreign-Invested Corporation Setup.
Foreign-Invested Enterprise (FIE) Registration: From Investment Report to Registration
The foreign investment report and the foreign-invested enterprise registration are two separate steps. The report is made in advance of the investment; registration follows once an event such as completion of the capital contribution occurs.
- Investment report (Foreign Investment Promotion Act): a foreign investor must report to the competent minister (Ministry of Trade and Industry, 산업통상부) in advance and receive a report certificate. The report is submitted to KOTRA or a foreign exchange bank.
- Capital payment, incorporation and business registration: remit the investment funds, file the incorporation registration with the court registry, and register the business with the local tax office.
- FIE registration: registration is required when an event such as completion of the capital contribution occurs, and the Decree sets registration within 60 days from the date the event occurred.
- Registration documents: a copy of a foreign currency purchase certificate or foreign currency deposit certificate showing the remitter (not required for contributions in kind); for a sole proprietor, a deposit certificate in the business name; supporting documents if someone else remitted the funds. Confirm other documents and the filing method with the competent authority.
- Link to the D-8 visa: the D-8 visa documents include the foreign investment report (with a corporate registry certificate or a business registration copy) or a copy of the investment enterprise registration certificate. Immigration offices can check registration and cancellation status through KOTRA's FIE registration information system.
Provisions and documents may be amended, so check the rules and the authority's guidance in force when you file.
Cost of Setting Up a Company in Korea as a Foreigner: Government Fees and Statutory Costs
The minimum investment of KRW 100 million or more (Enforcement Decree of the Foreign Investment Promotion Act) is the amount invested (capital), not a fee. Government fees and statutory costs arise separately at steps such as the investment report, incorporation registration, business registration and FIE registration.
Amounts depend on the rules and notices in force, so this page lists no figures. Check the current guidance of the competent authority, KOTRA or your foreign exchange bank when you file. Fees at the visa stage should likewise be checked against the Ministry of Justice notice and the guidance of the competent immigration office or Korean mission.
How Long Does Company Setup Take? The Steps Involved
This page does not state a fixed duration. Setup involves the steps below, and the time each takes depends on the competent authority and on whether documents need to be supplemented.
- Foreign investment report and issuance of the report certificate (KOTRA or a foreign exchange bank)
- Remittance and confirmation of the investment funds
- Incorporation registration at the court registry
- Business registration at the tax office
- FIE registration (the legal deadline is 60 days from the date the triggering event occurred; this is a filing deadline, not a processing time)
- D-8 visa review (visa issuance certificate application or direct application at immigration)
- Alien registration after entry (within 90 days)
Processing time at each step varies with the competent authority.