Incorporation Procedure
Incorporation procedure for a Subsidiary (or a Joint Venture)
1. Search for the company name
A company name which is not clearly distinguished from the one that is already registered by the other person cannot be registered for the same line of business within the same megalopolis, city or county.
2. Things to be decided for the registration
1) Essential 
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Head office address 
Names and resident registration numbers of the directors and the auditor 
Name, resident registration number and address of the director who will represent the corporation 
Name, resident registration number and address of the promoters 
Business line 
Unit price of stock 
Total number and types of issued stocks 
Total amount of capital 
List of shareholders 
Article of Incorporation 
 
2) Optional
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Rules pertaining to the transfer of stocks, in case it requires an approval of the board of directors Location of branch offices 
Duration of the corporation's existence and the reason for dissolution, if any 
Rules pertaining to the distribution of dividend if it is to be paid out before the opening day 
Procedure to issue convertible bonds 
If the corporation is represented by more than one person, the rules that state the multiple representation 
If stocks are to be destroyed to offset the dividend to be paid out to the stockholders, the rules that state the cancellation by destruction 
Name and address of the headquarter of the proxy, if any
3. How to draw up the Articles of Incorporation and get it notarized
1) Significance 
  The articles of incorporation are the basic rules about the company's organization and activities or a document that states them. The document can be made in Korean, in any foreign language or in both.
 
2) Information Required 
  A. Essential Information 
a. Purpose 
b. Company Name: Must include 'corporation' 
c. Total number of stocks to be issued 
d. Unit price of stock: more than 100 won(minimum capital required: 50 million won) 
e. Number of stocks to be issued at the creation of the corporation 
f. Location of the headquarter 
g. Method of announcement 
h. Names and addresses of the promoters
 

B. Selective Information 
a. Extraordinary Expenditures 
These are the matters that if they are not provided for pursuing of self-interests by the promoters and the third parties may threaten the financial foundation of the company and harm the interests of the company and stockholders. 
 
- Special benefits to be awarded to the promoters and the list of the recipients of hose benefits 
- The names of investors, purpose, type and price of their investment in kind and type and 
number of stocks to be paid in return 
- Type, amount, price and the assignor's name of the assets promised to be transferred after 
the creation of the corporation 
- Cost of incorporation to be borne by the corporation and the amount of remuneration for the 
promoters 
* Because there is always concern over a possible misuse of these irregular costs, they were 
required to be reviewed by the court . 
 
b. Other Selective Information 
Matters pertaining to the stocks 
Matters pertaining to the general meeting of stockholders 
Matters pertaining to directors, auditor and liquidator 
 
C. Optional Information 
Location of branch offices, types of stockholder's rights, date of regular general meeting, etc.
 
3) Notarization
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The articles of incorporation become effective after it is notarized by a public notary certified by the local district attorney's office that has jurisdiction over the area where the corporation headquarter is located.
Required Documents: Three copies of the articles of incorporation, certificate of registered seal and resident registration card(The power of attorney is also needed for a proxy.)
4. Incorporation steps
1) Get approval from Ministry of Finance about foreign direct investment 
 
2) Register with the Commercial Registration Office of court 

















Promoters are recruited. 
Inaugural meeting of promoters is held and the minutes are taken. 
The article of incorporation is made and certified by a public notary. 
Matters related to issuing stocks are decided. 
Stocks are underwritten by the promoters. (Incorporation through promotion) 
Stocks are underwritten by the promoters, stockholders are subscribed and stocks are distributed. (Incorporation through subscription.) 
Actual investment(including investment in kind) is made. 
Inspection of the incorporation process by the members of the board of directors and auditor is made. (in case of incorporation through promotion, this is required only when there is no clause in the articles of incorporation that prohibits extraordinary expenditures during the process of incorporation.) The result of an inspection on the extraordinary expenditures during the process of incorporation made either by an inspector or by an expert is reported. (The report is made to the promoters in case of incorporation through promotion and to the inaugural meeting in case of incorporation through subscription.)
The inaugural meeting is held.(This is not required in case of incorporation through promotion.)
The board of directors meets. 
Incorporation is registered. 
The creation of an corporation is reported.

3) District tax office registration
 
4) Open bank account
 
5) Register Ministry of Finance and get FDI certificate
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