Unlocking Business Opportunities in South Korea

Embarking on a business venture or incorporating a company in South Korea is within reach for practically anyone, whether you're an individual entrepreneur or a foreign entity. The process of establishing various business entities is contingent upon the nature of operations and compliance with relevant legal frameworks and regulations.

At Pearson & Partners Korea, we pride ourselves on delivering excellence in our services. Our team of certified Korean legal professionals oversees the entire procedure for initiating, registering, and incorporating businesses in Korea, ensuring a seamless and compliant process.

As part of the incorporation process in South Korea, companies must register with both the Court and the Tax Office. Upon successful completion of the registration procedure, two certificates of registration will be issued, validating your company's legal status.

For foreign entities or individuals without South Korean residency, there are four primary avenues for initiating and registering a business or company in the country:

1. Local Corporation: This registration category pertains to Korean-owned companies, representing the predominant form of incorporation in South Korea. Accessible to both foreign nationals and Korean citizens, a local corporation does not require a minimum capital for registration. It encompasses various business types, including:

   • Joint Stock Company (주식회사): An ideal choice for foreign investors looking to establish subsidiaries in South Korea. With publicly issued shares, shareholders have limited liabilities based on their initial capital investment. Additionally, stocks can be freely transferable with board approval, and general shareholder meetings are mandated at least once annually.
   • Limited Liability Company (유한회사): A favored business type in South Korea, offering flexibility for up to 50 shareholders. Shareholders enjoy limited liability, and the requirements for setting up a Limited Liability Company are minimal.

2. Foreign Direct Investment Company (FDI): Foreign individuals and companies can opt to establish a local corporation as an FDI. This option is open to various business types listed earlier, requiring a minimum capital of 100 million KRW. FDI companies may enjoy certain advantages under Korean law based on their specific activities.

3. Branch Office: While an FDI Company is considered a local corporation, a Branch Office is viewed as a foreign entity. Here, the foreign headquarters and the Korean branch are legally one entity. Branch offices can engage in profit-generating activities in Korea and are subject to the same tax laws and rates as domestic Korean companies.

4. Liaison Office: Similar to a Branch Office, a Liaison Office is also deemed a foreign corporation. Primarily serving foreign investors without immediate plans for business operations in South Korea, its activities are restricted to non-commercial tasks like market research and marketing on behalf of the parent company. Despite this limited scope, registration with the appropriate tax office is mandatory.

At Pearson & Partners Korea, we specialize in facilitating the establishment and incorporation of foreign enterprises and corporations within South Korea. From the initial consultation onward, we provide comprehensive support, assisting in selecting the optimal company registration structure and furnishing essential documentation. Our services also include power of attorney assistance, bank account setup, VAT registration, and facilitating visa applications for foreign managerial personnel.

Unlock the full potential of your business endeavors in South Korea with Pearson & Partners Korea by your side. Contact us today to begin your journey towards successful company registration and expansion in one of Asia's most vibrant economies.