>> Joint Venture


General

Foreign investors can establish joint venture in Korea through acquisition of newly issued or outstanding stocks. Under Korean commercial law, there are four types of joint venture according to the scope (unlimited or limited) or the nature (direct or indirect) of the liabilities borne by the investors.

Partnership
Limited partnership
Corporation (Stock Company)
Limited Liability Company

More than 95% of joint ventures in Korea are corporation due to its features of indirect and limited liabilities.

Court registration

The procedures and documents necessary for incorporation and registration of a foreign-invested enterprise in the Korea are as follows.

Four or more promoters are required.
Articles of incorporation must be drawn up and notarized.
An application for incorporation and registration must be submitted to the Registrar's Office with the following particulars :
Articles of incorporation
Document certifying actual subscription for shares
Statement of stock subscription
Certificate of payment for shares on deposit in a bank
Report of inauguration by promoters
Report of inaugural meeting
Report of auditor's investigation
Report on election of at least three directors and statutory auditor
Minutes of board of directors' or shareholders' meeting to elect a representative
Certificate of power of attorney (if registration is done by proxy)
Investment approval issued by the Ministry of Finance

Report of establishment to the Tax office

No later than 30 days following the registration, a report of establishment is to be filed with the following documents with the concerned Tax office in order to apply for a business license.
   Certificate of incorporation
   Articles of incorporation
   The name, address and share portion of the promoters
   Opening balance sheets
   Detail list of property/assets
   Registered chop (seal) of the company
   Certificate of payment for shares of deposit in a bank
   List of shareholders
   List of directors
   Other documents, if required.