South Korea is a prime destination for foreigners interested in setting up a company. As one of Asia's most advanced economies and a key member of the Four Asian Tigers, South Korea offers a strategic location between China and Japan. This favorable positioning, combined with its efficient company registration process, makes it an attractive choice for business establishment. This guide outlines the steps and requirements for successful company formation in South Korea, whether you're a new entrepreneur or an experienced business owner.
When forming a company in South Korea, the type of business entity depends on factors like company size and ownership structure. Entrepreneurs can choose from various legal structures based on their intent to operate as a sole owner or in partnership with local or foreign investors. Available options include:
To initiate the company formation process, follow these steps:
You must have at least one shareholder and one director, with no citizenship or residency requirements for these roles. The business registration process typically takes about two weeks, while setting up a bank account and obtaining licenses may extend the timeline.
One of the advantages of forming a company in South Korea is the absence of a mandatory minimum share capital for private companies. However, you must allocate the required amount (at least USD 5,000) based on the sector in which you plan to operate.
Foreign entrepreneurs have several options for fully controlling their business in South Korea, including:
These options are governed by Foreign Direct Investment (FDI) laws and come with specific compliance requirements, such as a minimum investment of KRW 100 million (approximately USD 90,000) for local companies. The incorporation process requires an initial notification to the Foreign Direct Investments Board.
Additionally, foreign investors must obtain an entrepreneur visa to acquire a Korean residence permit. For stays longer than six months, obtaining an alien registration card is usually required, serving as a form of identification and the first step toward potential permanent residency in South Korea.
South Korea's advanced economy and strategic location make it an attractive destination for entrepreneurs. The company formation process is streamlined, with various business structures to choose from. Compliance with FDI regulations is crucial for foreign investors.
For expert assistance with your company formation journey in South Korea, contact us. Our team of professionals is here to help you navigate the complexities of establishing your business and ensure a successful start.