Establishing a Foreign‑Invested Company (FIC) in Korea
Setting up a subsidiary or foreign-invested company (FIC) in Korea provides your business with full corporate personhood and the ability to engage in sales, execute contracts and hire staff. This structure is best suited for foreign investors seeking a long-term presence with operational control and access to government incentives. We assist you at every step – from initial investment registration to incorporation and post-establishment compliance.
Who this is for
This service is ideal for:
- Foreign corporations establishing a wholly owned subsidiary or joint venture in Korea
- Entrepreneurs launching a new business entity backed by overseas capital
- Venture capital and private equity firms investing in Korean startups
- Existing liaison or branch offices upgrading to a full legal entity
What we do
- Provide pre-investment advisory on corporate structures (LLC, corporation) and investor eligibility
- Check and reserve the Korean company name
- Prepare articles of incorporation, shareholder agreements and bylaws
- Guide capital remittance and obtain the Certificate of Foreign Investment (FDI report) from the bank/KOTRA
- Assist with notarization, apostille and translation of parent company documents
- File incorporation with the court registry and obtain corporate registration number
- Register for tax/VAT, social insurance and open corporate bank accounts
- Support business licensing, office lease agreements and post-incorporation filings
- Coordinate visa applications for foreign directors and key employees
Our process
- Strategic planning: Assess your investment goals, choose entity type and plan capital structure.
- FDI reporting: Submit the foreign investment declaration to a designated bank or KOTRA and remit capital.
- Name check & drafting: Reserve your company name and draft the articles of incorporation and agreements.
- Incorporation & registration: Sign incorporation documents, notarize and file with the court registry to obtain your corporate registration number.
- Tax & post-setup tasks: Register for tax and social insurance, open a corporate bank account, lease office space and obtain any required licences.
- Ongoing compliance: Provide corporate secretarial support, annual reporting and visa/HR services.
Typical documents
- Investors’ passports and personal identification
- Parent company’s certificate of incorporation and articles of association
- Board resolution approving investment and appointment of directors
- Power of attorney to authorized local representative
- Notarized and apostilled copies of required documents
- Bank capital remittance certificate
- Office lease agreement or virtual office contract
- Application forms for registration and tax reporting
Timeline & fees
Establishing a foreign‑invested company typically takes 6–8 weeks depending on document legalization and capital remittance. Fees start from [PLACEHOLDER] and vary based on the company type, number of shareholders and licensing requirements.
Frequently asked questions
- What is the minimum capital requirement? For most industries, the minimum paid-in capital for FIC registration is KRW 100 million (~USD 80,000) but may vary by sector.
- Do I need a Korean director or shareholder? A Korean resident director is generally required for certain industries; however, 100% foreign ownership is allowed for most sectors.
- How is a foreign‑invested company taxed? FICs are subject to corporate income tax, VAT and local taxes. Dividends remitted abroad may be subject to withholding tax.
- What’s the difference between an FIC and a branch office? An FIC is a separate legal entity with limited liability and full operational scope, whereas a branch office is an extension of a foreign parent and may face limitations.
- Can we convert from a liaison or branch office? Yes, conversion is possible by establishing a new corporation and transferring assets and employees; we guide you through the process.
Start your Korean company today
Ready to build your presence in Korea? Our experts streamline the incorporation process so you can focus on business development. Contact us for a customized roadmap.
Information may vary by case; we confirm requirements after initial review.