Navigating Foreign Direct Investment in Korea: A Comprehensive Guide
In the complex landscape of international business, making a Foreign Direct Investment (FDI) in Korea involves a specific set of procedures. At the core of these procedures is on the "Foreign Investment Promotion Act" a stringent regulation in Korea that foreign investors must observe to.
**Application of FDI Approval:
The first step for foreign investors is to apply for an "Approval of FDI" through a bank. This is an exchange transaction that needs to be initiated from the outset, in compliance with the "Foreign Investment Promotion Act"
**Issuance of FDI Approval Certificate:
Once the application is approved, the bank issues an FDI Approval Certificate accompanied by a remittance advice. This document enables the investor to transfer their capital fund from overseas to Korea.
**Transfer of Capital Fund:
Since a bank account in Korea may not yet exist at this stage, the capital fund is temporarily placed in a "Separate Deposit Account" in the bank. This account serves as a holding area for the funds until a bank account is officially opened following registration at the court.
**Registration of the company at the court:
Once you capital arrived in a Korean bank, you can register your company at the court governed your company business address.
Once it's registered at the court, you can apply for the tax registration at the tax office with your lease contract(business address).
**Bank account open:
You can open bank accounts with the tax registration copy and move the capital fund into your corp. bank account.
**FDI Registration Certificate:
Once all of above process is completed, you can apply for the FDI registration cert. at the bank.
You can apply for your D series visa once it's done at the Immigration office.
The entire process, from applying for FDI approval to opening a bank account, typically takes around two weeks. After this period, foreign investors can officially commence their business operations in Korea.
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**Q: What is the first step for foreign investors in Korea?
A: Foreign investors need to apply for an "Approval of FDI" through a bank, in accordance with the "Foreign Investment Promotion Act."
**Q: What happens after FDI approval is granted?
A: The bank issues an FDI Approval Certificate along with a remittance advice, enabling the investor to transfer their capital fund from overseas to Korea.
**Q: How long does it take to start a business in Korea as a foreign investor?
A: The entire process, from applying for FDI approval to opening a bank account, typically takes around two weeks.