Today's Invest Guide : Installation of branch office and liaison office of foreign company

The installation of the domestic branch office of a foreign corporation

means it conducts general business activities in Korea.

Establishing a branch office requires the appointment of

a representative and the same registration procedure

as a branch of a business in an equivalent category

or the most similar type of the company already established in Korea.

 Unlike foreign-invested companies, there is no concept of capital

for a domestic branch. Funds for business operation may be

brought from the head office of a foreign company. In this case

these funds must be foreign currency directly transferred to

a bank designated by the head office. 

 The branch office of a foreign corporation conducts profit-making

business activities in Korea. Therefore, the same corporate income

tax rate as typical domestic corporations is applied to the incomes

generated from businesses operating in Korea. The transfer of net

profit to a foreign country upon settlement of accounts is possible.

The liaison office conducts non-sales related activities for the head

office such as business liaison, market research, and R&D, and does

not conduct revenue-generating sales activities in Korea.

Steps to establish a domestic branch of a foreign corporation

1 Application of a corporation at a foreign currency bank

2 Branch Establishment Declaration & Acceptance Permission

Court registration office (capital registration / corporation establishment

- Tax office (business registration)

3 Court Registration and Business Registration (branch)

& Identification Number Grant (liaison office)