Branch Office Setup
How to establish a branch office of a foreign company in Korea
What is a Branch Office?
A branch office is a business entity established by a foreign company to conduct business activities in Korea. It does not have a separate legal personality and operates as part of the overseas head office, allowing revenue-generating business activities within the scope of the head office's business.
Unlike an FDI company, there is no obligation to pay in separate capital, and the establishment procedure is relatively simple. However, income generated in Korea is subject to Korean tax laws.
Branch Office vs. FDI Company
| Category | Branch Office | FDI Company |
|---|---|---|
| Legal Status | Part of overseas HQ (no separate legal personality) | Independent legal entity |
| Minimum Capital | None | KRW 100 million+ |
| Business Activities | Possible (revenue generation) | Possible |
| Tax Benefits | Limited | FDI incentives |
| D-8 Visa | Not applicable | Eligible |
Setup Procedure
Operating Fund Arrival Report
Report arrival of operating funds to the foreign exchange bank
Branch Registration
Register the foreign company branch at the competent court
Business Registration
Apply for business registration certificate at the tax office
Additional Filings
Apply for industry-specific permits and licenses
Required Documents
- •Head office articles of incorporation and corporate registration (apostilled or consularized)
- •Board resolution of head office (branch establishment resolution)
- •Copy of representative's passport
- •Power of attorney (when applying through an agent)
- •Domestic office lease agreement
- •Proof of operating fund remittance
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Request ConsultationFrequently Asked Questions
How do I set up a Korean branch of a foreign company?
A branch is a business entity established so a foreign corporation can conduct business in Korea. You register the branch establishment with the competent court and complete business registration. There is no separate capital requirement, but the branch is liable for tax on income earned in Korea.
What is the difference between a branch and a subsidiary (corporation)?
A branch is part of the head office with no independent legal personality, and the head office bears unlimited liability for its debts. A subsidiary (foreign-invested corporation) has independent legal personality, limited liability, and can receive foreign-investment incentives.
What documents are required to establish a branch?
You need the head office's corporate register (notarized/apostilled), a resolution to establish the branch, documents on the representative, an office lease agreement, and more. Requirements can vary by case, so we recommend a prior review.
Can a branch qualify for a D-8 visa?
A branch alone generally cannot meet the D-8 (corporate investment) visa requirements. A D-7 (intra-company transfer) visa is appropriate for dispatched staff; if investment-based residence is needed, consider establishing a subsidiary.