A foreign-invested company is a domestic corporation established under the Commercial Act and classified as a partnership company, a limited partnership company, a limited liability company, a limited company, or a stock company. The most common types of corporations established by foreign investors are a limited company and a stock company.

Foreigners can do business by acquiring new or existing stocks (including incorporation) pursuant to the Foreign Investment Promotion Act or by establishing a local branch or a liaison office as prescribed in the Foreign Exchange Transaction Act.
The type and business category of the relevant company should be considered when choosing the optimal location of the factory site of a foreign-invested company. Generally, a manufacturing company chooses an industrial complex where the factory establishment procedure is relatively simple or constructs a factory at an individual site by altering the use of the site.