Step-by-Step Guide to Korea Company Registration for Foreign Investors

Why South Korea is a Prime Destination for Expats and Businesses

South Korea seamlessly blends modern infrastructure with a deep cultural heritage, making it an excellent choice for expatriates and their families. The country boasts top-tier healthcare, a globally recognized education system, and a thriving cultural landscape. The global influence of Korean culture—fueled by K-pop, K-dramas, and its cuisine—has further elevated South Korea’s international appeal. For businesses, this cultural vibrancy not only strengthens their ability to attract global talent but also cements South Korea's reputation as a premier hub for both lifestyle and business.

How to Register a Business in South Korea

Setting up a business in South Korea involves strategic planning and following the necessary regulatory steps. Below is a step-by-step guide to streamline the process:

1. Choose the Right Business Structure

Identify the structure that best aligns with your objectives, operational needs, and liabilities.

2. Select and Register a Business Name

Choose a unique and compliant name, then register it with the South Korean company registry.

3. Draft Articles of Association

Create a notarized document detailing the company's purpose, shareholder roles, and decision-making processes.

4. Submit Incorporation Documents

Provide the required paperwork, including the certificate of incorporation, to the appropriate authorities.

5. Obtain a Business License

Acquire the necessary licenses to operate legally within South Korea.

6. Complete Tax and Social Security Registration

Register with the National Tax Service and National Pension Service to meet statutory requirements.

7. Ensure Ongoing Compliance

Adhere to regulatory requirements such as filing annual reports and conducting shareholder meetings.

Steps to Establish an LLC in South Korea for Foreign Investors

For foreign entrepreneurs, here’s a simplified process to establish a Limited Liability Company (LLC):

• Notify the Foreign Exchange Bank (FEB): Submit an investment notification along with proof of identity.
• Transfer Capital: Deposit funds into a local bank account or transfer them from abroad to secure a bank certificate.
• Register the Company: File documentation detailing the directors, auditors, and shareholders with the relevant authorities.
• Register for Taxation: Complete the tax registration process with the proper agencies.
• Open a Corporate Bank Account: Transfer capital into the company’s account for operational purposes.
• Register as an FDI Company: File for Foreign Direct Investment (FDI) registration within 30 days of depositing the capital.

Conclusion

Establishing a business in South Korea provides access to one of the most dynamic and globally connected economies. However, navigating regulatory processes and selecting the right business structure can be challenging.

At Pearson & Partners Korea, we offer tailored assistance to guide businesses through the incorporation journey—from registration to ongoing compliance. Ready to start your venture? Contact us for expert advice designed to meet your unique needs.