Executive summary
Once a foreign company decides to operate in Korea through a branch or liaison office rather than incorporating a subsidiary, the registration path looks different from setting up a Korean company. Instead of the foreign investment notification and FIE registration process used for subsidiaries, a branch or liaison office goes through foreign exchange transaction registration, followed by tax registration.
This guide walks through that process step by step, and explains where the two structures diverge once registration is complete.
Who should read this?
- Foreign companies establishing a Korean branch for revenue-generating activities
- Foreign companies setting up a liaison office for market research or headquarters support
- In-house Legal and Tax Managers coordinating local registration
- Finance teams planning the entity's compliance calendar
The short answer
A non-resident foreign company or individual enterprise setting up a branch or liaison office in Korea must:
- File a domestic branch establishment notification under the Foreign Exchange Transaction Regulations
- Complete business registration (branch) and register the branch with the court, or obtain a unique registration number from the tax office (liaison office)
- Understand that a branch conducts revenue-generating business, while a liaison office is limited to non-business functions such as liaison and market research
The registration route is the same first step for both — what differs is what happens after, based on which structure was chosen.
Quick comparison
| Feature | Branch (지점) | Liaison Office (사무소) |
|---|---|---|
| Can generate revenue in Korea | Yes | No |
| Typical activities | Sales, service delivery, contracting | Market research, liaison with HQ, promotional support |
| Business registration required | Yes | Generally, a tax registration number only |
| Court registration (incorporation-style registry) | Yes | No |
| FX notification required | Yes | Yes |
Understanding the process
Step 1: Foreign Exchange Transaction Notification
A non-resident foreign corporation or individual business establishing a domestic branch or office in Korea must file a notification under Article 9-33 of the Foreign Exchange Transaction Regulations.
This notification is filed with either:
- A designated foreign exchange bank, or
- The Ministry of Economy and Finance (MOEF) directly — required specifically when the intended business falls into categories such as financing, brokerage of overseas finance, card business, or installment financing; securities or insurance-related business; or business not otherwise permitted under the Foreign Investment Promotion Act
The notification must be filed on the prescribed Domestic Branch Establishment Notification form, completed in Korean — any supporting English-language documents must be accompanied by a Korean translation.
Documents to submit typically include:
- The domestic branch establishment notification form
- Proof of the parent foreign company's name, location, and principal business
- Evidence of any license, approval, or registration required for the intended business under other applicable laws
- A statement describing the scope and content of the business to be conducted in Korea
Step 2: Business Registration and Court Registration (Branch)
Once the FX notification is filed, the branch proceeds to:
- Business registration with the local tax office
- Court registration of the branch itself
A liaison office, by contrast, generally does not go through court registration, since it does not conduct business activity — it instead obtains a unique registration number from its jurisdictional tax office.
Step 3: Corporate Tax Domestic Place of Business Notification
Separately from the FX notification, once a foreign company has a domestic place of business in Korea, it must file a domestic place of business establishment notification with its jurisdictional tax office within 2 months of that date, attaching:
- A balance sheet as of the date the domestic place of business was established
- Documentation of the head office's incorporation registration
- Articles of incorporation
- A copy of the domestic branch establishment notification filed under the FX regulations
Step 4: Business Registration Filing Deadline
Business registration itself must be filed within 20 days of the date business commences. Required documents include the business registration application, business license/registration copies (where the business requires a license, registration, or report under applicable law), and a copy of the lease agreement if the office space is leased.
Filing a corporate establishment report under the Corporate Tax Act is treated as satisfying the business registration filing requirement as well, so the two are commonly done as a single combined filing.
Non-Profit Foreign Corporations: Commencing a Profit-Making Business
A non-profit foreign corporation that already has a domestic place of business and later begins a profit-making activity must separately notify its tax office within 2 months of that activity's start date, along with a balance sheet related to that new activity.
Closing a Branch or Office
If a branch or liaison office is closed, the entity that originally received the FX notification must be given a domestic branch closure notification. If proceeds from disposing of domestic assets are being remitted abroad, a tax clearance certificate from the branch's jurisdictional tax office must also be provided to the designated foreign exchange bank.
Dependent agent structures: a related but separate registration
A foreign company that conducts business in Korea through a dependent agent — whether under a tax treaty's dependent agent PE definition or under Korean domestic law — must register for business separately from the agent itself. If the foreign company fails to register, the tax office may notify the dependent agent and register the business ex officio.
Because a dependent agent structure typically has no physical or personnel presence of its own in Korea, registration requirements that assume a physical office (such as branch registration documents) are not required in this case. In situations where a foreign company's presence arises solely because service provision through employees exceeds six months — and no physical facilities exist once that service period ends — business registration can be completed through the domestic place of business notification and a tax agent appointment filing alone, rather than a full branch registration.
Practical insight: the FX filing and the tax filing are two different clocks
One point that regularly catches foreign companies off guard is that the foreign exchange notification (filed under FX regulations, before or as the branch is established) and the domestic place of business notification (filed with the tax office within 2 months of having a place of business) are governed by different rules with different triggers. Completing one does not automatically complete the other — both need to be tracked on their own timeline.
Practical insight: a liaison office registering "just in case" still needs the FX filing
Some headquarters teams assume that because a liaison office won't generate revenue, formal registration can be lighter-touch or skipped. In practice, the FX transaction notification requirement applies regardless of whether the entity is a revenue-generating branch or a non-revenue liaison office — the obligation is tied to establishing a domestic presence, not to whether the presence earns income.
What foreign companies often get wrong
Mistake #1
Assuming a liaison office requires no formal registration because it does not generate revenue.
Mistake #2
Submitting English-only documentation without a Korean translation for the FX notification.
Mistake #3
Missing the 2-month deadline for the domestic place of business notification because it is tracked separately from the FX filing.
Mistake #4
Treating a dependent agent presence as exempt from business registration simply because there is no physical office.
Frequently asked questions
Do liaison offices need to file the same foreign exchange notification as branches?
Yes. Both branches and liaison offices are treated as forms of "domestic branch" under the Foreign Exchange Transaction Regulations and must file the same initial notification, even though a liaison office cannot conduct revenue-generating business.
Which authority do I file the FX notification with?
Generally a designated foreign exchange bank, unless the intended business falls into specific categories (financing, securities, insurance-related, or business otherwise restricted under the Foreign Investment Promotion Act), in which case the Ministry of Economy and Finance is the filing authority.
Does a liaison office need court registration like a branch does?
No. A liaison office typically obtains a unique registration number from the tax office rather than going through court registration, since it isn't conducting business activity.
What happens if we change the branch's registered details later?
A separate domestic branch change notification must be filed with the same authority that received the original establishment notification.
Can we register a dependent agent's business the same way as a branch?
No — a foreign company operating through a dependent agent registers separately from the agent, and documentation requirements assuming a physical office are not applicable in that context.
Practical checklist
Before establishing a Korean branch or liaison office, confirm:
- You know whether your activities require a branch (revenue-generating) or qualify as a liaison office (non-revenue)
- Your FX notification documents are translated into Korean where needed
- You've identified whether your business falls under the categories requiring direct MOEF filing rather than a bank filing
- You've calendared the 2-month deadline for the domestic place of business notification, separately from the FX filing
- You've calendared the 20-day deadline for business registration from business commencement
- If applicable, you've assessed whether a dependent agent structure applies instead of a branch or liaison office
Key takeaways
Registering a Korean branch or liaison office runs on two separate tracks — foreign exchange notification and tax registration — each with its own deadlines and triggers. Understanding which structure you're establishing, and tracking both filings independently rather than assuming one covers the other, is what keeps the process from creating avoidable compliance gaps later.
Related guides
If you found this guide helpful, you may also be interested in:
- Branch vs. Subsidiary vs. Liaison Office in Korea
- How to Register a Foreign-Invested Company in Korea: A Step-by-Step Guide
- Permanent Establishment (PE) in Korea (coming soon)
- VAT Registration in Korea for Foreign Companies