Step-by-Step Guide to Korea Company Registration for Foreign Investors
Expanding your business into South Korea is an exciting opportunity, but registering a company as a foreign investor involves multiple steps. Understanding the process can help you avoid costly mistakes and delays. This guide walks you through the essential stages of company registration in Korea so you can enter the market with confidence.
1. Choose the Right Legal Entity
Foreign investors typically select one of the following structures:
- Limited Liability Company (LLC / Yuhan Hoesa): Flexible, simple to manage, and ideal for small to medium-sized enterprises.
- Joint Stock Company (JSC / Chusik Hoesa): Common for larger businesses, with stronger governance requirements.
- Branch Office: Functions as part of the foreign parent company.
- Representative Office: Used for market research; cannot conduct profit-making activities.
Need help deciding? See our guide on LLC vs. JSC in Korea.
2. Reserve and Register Your Business Name
- The company name must comply with Korean corporate naming rules.
- It must be registered with the Commercial Registry Office.
- Tip: Choose a name that clearly represents your brand and is easy to use in both English and Korean.
3. Prepare the Articles of Incorporation
This foundational document defines your companyโs purpose, structure, and governance.
- Must include details such as capital, shareholders, and directors.
- Needs to be notarized before submission.
4. Deposit the Initial Capital
- Foreign investors must open a temporary Korean bank account.
- Capital should be transferred and verified by a Foreign Exchange Bank (FEB).
- For recognition under Foreign Direct Investment (FDI), an initial capital of at least โฉ100 million (~USD 75,000) is recommended.
5. File Incorporation Documents with the Court
Submit the required documents to the relevant district court, including:
- Articles of Incorporation
- Proof of capital deposit
- Identification documents (passports, etc.)
- Registration fees
Once approved, the company is officially incorporated.
6. Obtain a Business Registration Certificate (์ฌ์
์๋ฑ๋ก์ฆ)
Apply to the National Tax Service (NTS) within 20 days of incorporation.
- Required for tax filings and legal business operations.
- This certificate is essential for issuing invoices and hiring staff.
7. Register for Taxes and Social Insurance
To operate legally, companies must:
- Register for corporate tax, VAT, and local taxes.
- Enroll employees in the National Pension Service, Health Insurance, and Employment Insurance.
8. Set Up an Office and Bank Account
- A registered physical or virtual office address is required.
- Open a permanent corporate bank account once the company is registered.
Common Mistakes to Avoid
- Not preparing documents in both Korean and English.
- Underestimating the importance of FDI registration for foreign-owned companies.
- Delays in social insurance enrollment, which can lead to penalties.
Final Thoughts: Simplifying the Process
Company registration in Korea is highly structured but also complex for first-time investors. With the right guidance, the process can be completed smoothly in a matter of weeks.
At Pearson & Partners Korea, we specialize in helping foreign companies navigate the registration processโfrom entity selection to tax complianceโso you can focus on growing your business.
Ready to register your company in Korea?
Book a free consultation today and let us guide you through every step.
See our full Korea Company Registration Guide for more insights.
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