Your Passport to Success: Starting a Company in South Korea

If you’re a foreign entrepreneur looking to expand into Asia, South Korea deserves a top spot on your list. It’s rapidly becoming one of the most attractive destinations for international business, thanks to strong government support, generous incentives, and a regulatory environment that welcomes innovation. Whether you’re in tech, finance, or consumer goods, South Korea offers a skilled workforce and a thriving consumer market—an ideal recipe for launching or scaling a business.

In this post, we’ll walk you through the essential steps to registering a business in South Korea, and then dive into what the process looks like specifically for setting up a Limited Liability Company (LLC) as a foreign investor.

Step-by-Step Guide to Registering a Business in South Korea

1. Choose the Right Business Structure
Your first decision is to select a legal structure that fits your goals. The structure you choose will affect how you’re taxed, your level of personal liability, and how the business is managed. Take your time with this—it’s a foundational step.

2. Register a Unique Business Name
Next, come up with a name that reflects your brand and complies with South Korea’s naming regulations. This name must be registered with the corporate registry to make it official.

3. Draft and Notarize the Articles of Incorporation
This document outlines your company’s purpose, internal governance, and shareholder rights. Once prepared, it needs to be notarized before you can move forward.

4. Submit the Necessary Documents
Now it’s time to file the incorporation paperwork. This includes your business registration certificate and payment of the applicable government fees.

5. Secure the Required Business License
Depending on your industry, you might need a specific operating license to legally run your business in South Korea. Make sure to check what applies to your sector.

6. Register for Tax and Social Security
Enroll your company with both the National Tax Service and the National Pension Service. This ensures you’re meeting all tax and social contribution obligations from day one.

7. Stay Compliant
Once your business is up and running, maintaining good legal standing is key. This includes filing annual reports, holding shareholder meetings, and meeting other ongoing regulatory requirements.

Setting Up an LLC in South Korea as a Foreign Entrepreneur

If you’re planning to establish a Limited Liability Company (LLC) in South Korea, there are a few extra steps tailored specifically for foreign investors. Here’s what that process looks like:

1. Notify a Foreign Exchange Bank (FEB)
Start by submitting an investment declaration along with identity verification at a designated Foreign Exchange Bank branch.

2. Transfer Your Capital Funds
Deposit your investment capital—whether from overseas or within South Korea—into a temporary corporate bank account. You’ll need a certificate from the bank confirming the transfer.

3. Register Your Company
File your incorporation documents with the appropriate South Korean court. These documents must detail your company’s directors, shareholders, and auditors.

4. Complete Tax Registration
Register your business with the local tax authorities to ensure you’re in compliance with corporate tax regulations.

5. Open a Permanent Corporate Bank Account
Once your company is officially registered, move the capital from your temporary account into a permanent corporate bank account.

6. Apply for Foreign Direct Investment (FDI) Registration
Finally, submit your FDI registration within 30 days of making the capital deposit. This step is essential for legal recognition of your investment.

Final Thoughts

Starting a business in South Korea offers exciting opportunities in a fast-paced, tech-savvy, and globally connected market. By understanding the steps involved—from picking the right business structure to registering for taxes and staying compliant—you’ll be in a strong position to launch successfully.

📩Need help navigating the process?📩

Pearson & Partners Korea specializes in company formation and tax accounting for foreign entrepreneurs. Visit us today to get tailored support for your business venture in South Korea.