Summary of Factory Establishment Approval Process
Factory establishment is generally implemented in the order of ① approval of factory establishment ② construction of factory ③ registration of factory. When an application for approval of factory establishment outside of the industrial complex, the head of Si/Gun/Gu shall examine the related laws and decide whether to grant the approval according to the types of factory location, qualification of the founder of factory, the business type and the scale of factory and others. Below is a summary of each stage. 1st stage: The head of Si/Gun/Gu examines to establish the factory location; whether the factory location is inside or outside of the industrial complex.- In case the factory which is to be established belongs to the factory location inside the industrial complex, the head of Si/Gun/Gu shall establish the factory(conclude the contract for occupancy) in the industrial complex.
- In case the factory which is to be established belongs to the factory location outside the industrial complex, the head of Si/Gun/Gu examines whether the factory can be established according to the 「Industrial Cluster Development and Factory Establishment Act」.
2nd stage: In case the factory can be established according to the 「Industrial Cluster Development and Factory Establishment Act」, the head of Si/Gun/Gu examines whether the factory can be established pursuant to the 「National Land Planning and Utilization Act」. 3th stage: In case the factory can be established according to the 「Industrial Cluster Development and Factory Establishment Act」 and the 「National Land Planning and Utilization Act」, it can be established upon the acquisition of an approval of the business plan for foundation, if the factory to be established is a foundation factory of a small and medium enterprise. If the construction area of the factory that is to be established by the general founder is not less than 500 square meters, the factory can be established with the factory establishment approval.- In case the construction area of the factory that is to be established by the general founder is less than 500 square meters, the person who wishes to establish the factory has only to apply for a new factory registration after the factory established without the need to be approved for the factory establishment.