I am interested in setting up a foreign owned company in Korea which will import goods for distribution. The company will have 2 foreign shareholders + 1 foreign worker. The expected initial investment amount is about US$200,000. Could you kindly provide some information on the process, time and costs involved to make this happen?
- [FDI Procedures] FDI Company Setup and hiring foreigners question
- Consultant :
Dear Tracy, In order to establish a foreign-invested company in Korea, you need to check the FDI requirements and notification process. The minimum investment capital is KRW 100 million for EACH foreign investor, and this capital should be remitted in foreign currency from outside of Korea. If you check our website, www.investkorea.org, you can download "Doing Business in Korea" on the <Resources> menu, and refer to the foreign investment procedures and required documents on page 22. Once you complete the FDI procedures, you can apply for a foreign investor visa(D-8) at the competent Immigration Office or KOTRA. The foreign investor can apply for this visa since he/she made investment, but in case a foreign worker, you need to apply for a work permit, and eligibilities and requirements for a work permit differs depending on what level of expertise this foreign worker has. For more information regarding work permit application, please check www.hikorea.go.kr. If all documents are prepared and the office you will register the business is set, the whole procedures take 2~3 weeks on average. Registration tax is 0.4% of the capital(3 times if the company is established in an overpopulation control area), and local education tax is 20% of the registration tax. Let me know if you have further inquiries at firstname.lastname@example.org. Thank you. Lena Kim Investment Consulting Center