Korea Company Registration: A Step-by-Step Guide for Foreign Investors
How to Start a Business in South Korea
South Korea boasts one of the most educated and skilled workforces in the world, with a strong focus on STEM (science, technology, engineering, and mathematics) education. The availability of multilingual professionals with exceptional skills allows international companies to recruit talent and expand operations smoothly. Additionally, South Korea’s workforce is highly regarded for its dedication, adaptability, and strong work ethic—qualities that contribute to sustainable business growth.
Steps to Register a Business in South Korea
1. Decide on a Business Structure
Choose the structure that aligns with your goals, as it will impact your liability, management, and operational scope.
2. Select a Company Name
Pick a distinctive and memorable name that complies with South Korea’s naming regulations and represents your brand.
3. Register the Company Name
Officially secure your chosen name by registering it with the South Korean company registry.
4. Draft Articles of Association
Prepare and notarize a document outlining the company’s objectives, governance policies, and shareholder rights.
5. Submit Incorporation Documents
Provide the required documentation, including the certificate of incorporation, to the relevant authorities.
6. Obtain a Business License
Acquire the appropriate license to operate your business legally in South Korea.
7. Register for Taxes and Social Security
Complete the registration process with the National Tax Service and the National Pension Service to fulfill tax and social security obligations.
8. Maintain Compliance
Ensure ongoing compliance by filing annual reports, conducting shareholder meetings, and adhering to local laws.
How to Establish a Limited Liability Company (LLC) in South Korea
Foreign investors looking to set up an LLC in South Korea can follow these steps:
1. Notify the Foreign Exchange Bank (FEB)
Inform an FEB branch of your investment plans and provide identification documents for verification.
2. Transfer Initial Capital
Send the required capital from an overseas account or deposit it locally, and obtain a bank certificate confirming the transfer.
3. Register the Company
Submit the incorporation documents, including details about directors, auditors, and shareholders, to the Korean court.
4. Complete Tax Registration
Register with the relevant tax authorities to comply with local tax regulations.
5. Open a Corporate Bank Account
Transfer the initial capital from the temporary account to the company’s official corporate account.
6. Register as a Foreign Direct Investment (FDI) Company
Apply for FDI registration within 30 days of transferring the initial capital.
Conclusion
Starting a business in South Korea involves careful planning, a deep understanding of local regulations, and selecting the right business structure. By adhering to the country’s registration and compliance requirements, foreign investors can successfully establish themselves in South Korea’s vibrant economy.
At Pearson & Partners Korea, we offer end-to-end support for company formation, guiding you through every step of the process to ensure a hassle-free experience. Get in touch with us today for tailored solutions that align with your business objectives.
