Comprehensive Guide to Korea Company Registration for Entrepreneurs

South Korea is a top destination for global entrepreneurs looking to start a business. Positioned between China and Japan, its strategic location and strong economy make it a perfect hub for business ventures. This guide outlines the key steps and requirements for Korea company registration, whether you're a first-time entrepreneur or an experienced business owner.

Business Structures for Korea Company Registration

South Korea offers various company structures to accommodate different business needs based on ownership and size:

• Joint Stock Company (Chusik Hoesa): The most popular choice among foreign investors, this entity allows for public share issuance, with shareholder liability limited to their investment. It requires at least one annual general meeting for shareholders.
• Limited Liability Company (Yuhan Hoesa): Ideal for small, privately held businesses with up to 50 shareholders. It requires only one director and shareholder of any nationality and has no minimum capital requirement, though foreign investors must invest at least 100 million won under the Foreign Investment Promotion Law (FIPL).
• Partnerships: Options include General Partnerships (Hapmyeong Hoesa), Limited Partnerships (Hapja Hoesa), and Limited Liability Partnerships (Hapja Johap), each offering different rules on liability and ownership transfer.
• Branch Office: Acts as an extension of a foreign parent company, with shared liabilities and no ownership restrictions or investment requirements.
• Liaison Offices: Focus on non-commercial activities like market research and cannot engage in sales or revenue generation.

Steps for Korea Company Registration

To register a company in South Korea, follow these key steps:

1. Reserve your company name.
2. Draft and submit the Articles of Association, if needed.
3. Submit all required documents to the Companies Register.
4. Open a company bank account.
5. Obtain a tax identification number.
6. Apply for any necessary industry-specific licenses.

Regardless of the company type, you must have at least one shareholder and one director, with no nationality or residency restrictions. The entire process typically takes about two weeks, although setting up a bank account and acquiring licenses may take up to three weeks.

Requirements for Korea Company Registration

• Minimum Share Capital: While there is no required minimum for private companies, a starting capital of at least USD 5,000 is recommended, depending on the industry.
• Foreign Investor Guidelines: Foreign entrepreneurs can register a local company, set up a branch, or open a liaison office. Foreign Direct Investment (FDI) regulations require a minimum investment of KRW 100 million (around USD 80,000) for local entities. Notification to the Foreign Direct Investments Board is necessary before incorporation.

Foreign entrepreneurs should also register with tax authorities and ensure they hold proper visas and an alien registration card for identification, banking, and healthcare access. This card also serves as a step toward permanent residency in Korea.

Conclusion

With its strong economy and strategic location, South Korea is an attractive place to establish a business. The process of Korea company registration is straightforward, with simplified procedures and a variety of business structures to choose from. However, complying with FDI regulations is essential for foreign investors. For professional guidance with your company registration in South Korea, contact us. Our experienced team will help you navigate the complexities, ensuring a smooth start to your business.