A shareholder (individual or entity) as a foreign investor is required to report its investment before remittance of capital for acquisition of shares of a Korean entity (the “Company”). For such notification, we need the following documents:
1. Shareholder’s POA for foreign investment notification to bank
2. Certificate of Incorporation of shareholder
3. A stockholder list of the Shareholder
4. Copy of passport of the representative director of the Shareholder
After report to the bank, the Shareholder may send the initial capital to the account no. designated by the bank. Upon receipt of such fund from the Shareholder, the bank will issue the certificate of the Shareholder’s capital payment.
With the certificate of the Shareholder’s capital payment issued by the bank as above, we will register incorporation of Company to the competent registry of Korean court. For such registration, we need the following documents:
1. Minute of Shareholders of Company
2. Letter of Acceptance of the directors of Company
3. Evidence of Residence of the directors of Company
4. Copy of passport of the directors of Company
5. Certificate of Stock Acceptance of the Shareholder
6. Letter of Consent to Stock issue of the Shareholder
7. Article of Corporation
After completing the registration at the registry, the Company may issue a certificate of company incorporation registration. With the certificate, the Company will apply for the business registration to a competent tax office. And the tax office will issue a business registration license to the Company.
With the business registration license, the representative of the Company visits the bank and opens a bank account. Then, the bank will transfer the initial capital which the bank has possessed to the bank account of the Company.
After completing the whole process above, the bank will issue a certificate of foreign-invested company notification to the Company.
1. For these processes, we need the ancillary documents of the Shareholder or the directors for each process as shown above.
We will prepare the documents with a separate table containing explanation and instruction on the documents.
2. In case the initial capital injection is less than KRW100,000,000.0 per shareholder, then, the investment will be categorized as an
“indirect investment” instead of “direct investment” under the relevant Korean law and
(i) the foreign investment notification process will be replaced by foreigner’s security acquisition notification, and
(ii) the Company will not be the subject of the final stage of foreign-invested company notification.