Korean branch of a foreign company makes that it is possible to establish a company in Korea that can conduct business activities without burdening capital.
There are three forms in which foreign companies can operate in the Korean market: establishment of a foreign-invested corporation (Korean domestic corporation), establishment of a branch (foreign corporation), and establishment of a liaison office (foreign corporation).
In the case of establishing a foreign investment corporation, the minimum capital must be 100 million or more, and in the case of a liaison office, there is a disadvantage that business activities that generate profits cannot be conducted.
On the other hand, in the case of branch establishment, it is possible to establish with a small capital at the beginning and has the advantage of being able to conduct business activities to generate profits. Profits can also be remitted to the home country.
- Report on the establishment of a domestic branch of a foreign company
- Power of attorney must be notarized
- Certificate of the resolution of the board of directors of the foreign corporation
- – The resolution of the board of directors was prepared with the content that the foreign corporation, which is the head office, held a board of directors (or general shareholders’ meeting) to establish a branch in Korea and to appoint 000 as the representative of the Korean branch.
- Certificate of Corporate Nationality
- – Issued by foreign government agencies. A certified copy of corporate registration in Korea
- Business Plan
- – There is no designated form, and the contents of the business to be operated in Korea and the branch to be established are described.
- Submission of a report on the establishment of a domestic branch of a foreign company (bank)
- In order for a foreign corporation to establish a branch in Korea, it must report the establishment of a domestic branch to a designated foreign exchange bank. You can think of a foreign exchange bank as a commercial bank that handles foreign exchange business.
- Issuance of foreign exchange remittance account
- Branch (business office) establishment registration
- – The Korean branch of a foreign corporation is not an independent corporation, but it must register the establishment of a business office with the court. This can be done by the representative of the branch delegated by the representative of the head office of the foreign corporation, and it is usually done through a judicial scrivener.
- – Required documents
- Board resolution of foreign corporation
- Foreign corporation certificate
- Korean representative’s inauguration consent (notarized) and a copy of passport
- Certificate of seal impression (notarization required)
- Article of incorporation
- Foreign corporation international branch establishment report
- Business registration (competent tax office)
After establishing a branch, you can apply for a D7 expatriate visa.
D7 visa application conditions
- The dispatched person must have worked at the head office for at least one year.
- In the case of less than one year of installation, the operating capital introduction amount must be at least 500,000 USD.
- Visa qualification cannot be changed in Korea (issued as an invitational visa)
- Except for the representative, you must prove that you are a professional.
- You can dispatch employees from the head office with a D7 visa
- You can hire foreign employees locally with an E7 work visa.
- Only income generated in Korea is subject to tax.