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The procedure for the establishment of a local corporation by a foreign investor is almost identical to that pertaining to the establishment of a domestic corporation, but requires the additional steps of pre-notification of foreign investment and foreign-invested company registration.

 


■ The Procedure for Establishing a Local Corporation

The procedure for establishing a local corporation consists of foreign investment notification, registration of incorporation, registration of business and foreign-invested company registration. The following provides the details of the important steps of the incorporation registration procedure and business registration procedure.

■ The Procedure for Establishing a Stock Company

The Commercial Act recognizes five forms of companies - partnership company, limited partnership company, limited liability company, limited company, and stock company. Most companies fall into the category of “stock company”.

Ways of establishing a stock company
Registration of incorporation of a stock company
Cost of establishing a stock company
Business registration
Promotion of incorporation Within two weeks from the date on which the investigation of the process of establishment is completed

- Registration tax(0.4% of the capital, three times when a stock company is established in an overconcentration control area)

- Local education tax(20% of the registration tax)

- Revenue stamp of the supreme court(Fee for registration application)

- Notarization fee(articles of association,etc.,partially exempted in case of incorporation by promotion with capital of 1 billion won or less)

Filed at a tax office

(Registration should be completed within 20 days from the date of business commencement)

Subscriptive incorporation Within twp weeks from the date on which the inaugural general meeting is closed