Korea Business Incorporation: Step-by-Step Guide for Foreign Entrepreneurs

Strategically located between China and Japan—two of the world’s largest economies—South Korea is a natural gateway to over 1.5 billion consumers across Asia. With world-class ports and international airports, the country offers seamless trade and logistics connectivity. As regional trade agreements and diplomatic ties evolve, businesses operating from South Korea stand to gain from improved market access and reduced trade barriers.

How to Start a Business in South Korea

Starting a business in South Korea is a straightforward process when you know the key steps. Here's a breakdown to guide you through:

1. Select the Right Business Entity

Your choice of legal structure—be it a corporation, branch office, or liaison office—will determine your tax obligations, liability exposure, and operational scope. Choose the entity that best supports your business objectives.

2. Choose and Register Your Business Name

Pick a distinctive name that reflects your brand identity and complies with Korean naming regulations. Then, register it with the Corporate Registry.

3. Prepare the Articles of Incorporation

This foundational document outlines your company’s mission, structure, and shareholder details. It must be notarized prior to submission.

4. Submit Incorporation Documents

File all required documentation—including the notarized Articles of Incorporation and business registration forms—with the appropriate government office.

5. Secure Industry-Specific Licenses (If Applicable)

Certain sectors require additional permits or approvals before operating. Be sure to verify any industry-specific requirements in advance.

6. Register for Taxes and Social Insurance

Register with the National Tax Service (NTS) for taxation purposes and with the National Pension Service (NPS) for social insurance coverage.

7. Stay Compliant with Ongoing Requirements

Ensure legal compliance through regular filings such as annual reports, shareholder meetings, and timely tax submissions.

How to Establish a Limited Liability Company (LLC) in Korea as a Foreigner

Foreign investors can establish an LLC in Korea with relative ease by following these key steps:

1. Declare Your Investment at a Foreign Exchange Bank (FEB)

Visit a designated FEB to report your intended investment and present valid identification.

2. Deposit Investment Capital

Transfer your funds into a provisional corporate bank account. The bank will then issue a certificate confirming the capital deposit.

3. Register the Company

File your company registration—including shareholder, director, and auditor details—at the local court.

4. Complete Corporate Tax Registration

Register your business with the local tax office to meet your corporate tax obligations.

5. Open a Permanent Business Bank Account

Once the company is officially registered, open a new corporate account and transfer the funds from the temporary one.

6. Apply for Foreign-Invested Company (FDI) Status

Within 30 days of your capital deposit, file for FDI recognition to obtain official foreign-invested company status.

Ready to Launch Your Business in Korea?

With advanced infrastructure, a skilled workforce, and access to key markets, South Korea offers a compelling platform for global expansion.

Pearson & Partners Korea delivers end-to-end support—from entity formation to regulatory compliance and local strategy.

👉 Contact us to confidently begin your business journey in Korea.